UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM ~~10-Q/A~~10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, ~~2019~~2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 000-54761

NOBLE VICI GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		42-1772663
(State or Other Jurisdiction		(I.R.S. Employer
of Incorporation or Organization)		Identification No.)

1 Raffles Place, #33-02

One Raffles Place Tower One

Singapore 048616

+65 6491 7998
(Address of Principal Executive Offices and Issuer’s
Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	NVGI	N/A

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer ☐	Accelerated filer ☐
	Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November ~~11, 2019,~~27, 2020, the issuer had outstanding 210,804,160 shares of common stock.

~~EXPLANATORY NOTE~~

This Amendment No. 1 to the Company’s Form 10-Q (the “Amendment”) amends Noble Vici Group, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (the “Form 10-Q”), as filed with the Securities and Exchange Commission on November 14, 2019, and is being filed to: (i) include information regarding a new major vendor affiliated with our Chief Executive Officer that represented more than 10% of the Company’s purchase during the period ended September 30, 2019; (ii) make certain immaterial corrections to the Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit); and (iii) make certain immaterial corrections to Note 10 “Income Tax.”

~~There have been no changes to the text of such items other than the changes stated in the immediately preceding paragraph.~~

This Amendment includes new certifications by our Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as exhibits 31.1 and 32.1 hereto.

Except as expressly set forth above, this Amendment does not, and does not purport to, amend, update or restate the information in any other item of the Form 10-Q or reflect any events that have occurred after the filing of the original Form 10-Q.

TABLE OF CONTENTS

		Page

PART I	FINANCIAL INFORMATION

ITEM 1	Financial Statements	4

	Condensed Consolidated Balance Sheets as of September 30, ~~2019~~2020 (Unaudited) and March 31, ~~2019~~2020 (Audited)	4

	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended September 30, 2020 and 2019 ~~and 2018~~ (Unaudited)	5

	Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) for the Three Months andSix ~~months~~Months ended September 30, ~~2019~~2020 and ~~2018~~2019 (Unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2020 and 2019 ~~and 2018~~ (Unaudited)	87

	Notes to Condensed Consolidated Financial Statements (Unaudited)	98

ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2320

ITEM 3	Quantitative and Qualitative Disclosures about Market Risk	4137

ITEM 4	Controls and Procedures	4137

PART II	OTHER INFORMATION	4238

ITEM 1	Legal Proceedings	4238

ITEM 1A	Risk Factors	4239

ITEM 2	Unregistered Sales of Equity Securities and Use of Proceeds	4240

ITEM 3	Defaults upon Senior Securities	4240

ITEM 4	Mine Safety Disclosures	4240

ITEM 5	Other Information	4240

ITEM 6	Exhibits	4341

SIGNATURES		4542

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical facts, included in this Form 10-Q including, without limitation, statements in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, events or developments which the Company expects or anticipates will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof); expansion and growth of the Company's business and operations; and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. However, whether actual results or developments will conform with the Company's expectations and predictions is subject to a number of risks and uncertainties, including general economic, market and business conditions; the business opportunities (or lack thereof) that may be presented to and pursued by the Company; changes in laws or regulation; and other factors, most of which are beyond the control of the Company.

These forward-looking statements can be identified by the use of predictive, future-tense or forward-looking terminology, such as "believes," "anticipates," "expects," "estimates," "plans," "may," "will," or similar terms. These statements appear in a number of places in this filing and include statements regarding the intent, belief or current expectations of the Company, and its directors or its officers with respect to, among other things: (i) trends affecting the Company's financial condition or results of operations for its limited history; (ii) the Company's business and growth strategies; and, (iii) the Company's financing plans. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Such factors that could adversely affect actual results and performance include, but are not limited to, the Company's limited operating history, potential fluctuations in quarterly operating results and expenses, government regulation, technological change and competition. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 8, 2018.

Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations. The Company assumes no obligations to update any such forward-looking statements.

Currency and exchange rate

Unless otherwise noted, all currency figures quoted as “U.S. dollars”, “dollars” or “$” refer to the legal currency of the United States. Throughout this report, assets and liabilities of the Company’s subsidiaries are translated into U.S. dollars using the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity.

PART I FINANCIAL INFORMATION

ITEM 1 Financial Statements

NOBLE VICI GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, ~~2019~~2020 AND MARCH 31, ~~2019~~2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

	September 30, 2019			March 31, 2019			September 30, 2020			March 31, 2020
	(Unaudited)			(Audited)				(Unaudited)			(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,969,854		$	691,331		$	24,591		$	223,527
Accounts receivable		719,816			6,145,460			141,400			152,545
Purchase deposits		3,048,807			2,600,732			1,684,359			1,619,966
Amount due from a third party		217,064			221,327
Deposits, prepayment and other receivables		1,332,161			361,884
Tax recoverable								–			65,403
Deferred costs								4,587,139			4,252,107
Deposits, prepayment and other receivable								513,148			418,541
Inventories		16,316			16,636			14,909			14,339

Total current assets		8,304,018			10,037,370			6,965,546			6,746,428

Non-current assets:
Intangible assets, net		419,278			566,262			5,282			6,170
Property, plant and equipment, net		3,630,671			3,754,685			3,653,639			3,467,527

Total non-current assets		4,049,949			4,320,947			3,658,921			3,473,697

TOTAL ASSETS	$	12,353,967		$	14,358,317		$	10,624,467		$	10,220,125

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	1,918,003		$	–
Accrued liabilities and other payables		648,944			964,001
Accrued liabilities and accounts payable							$	3,197,464		$	2,216,563
Commission liabilities		987,058			1,617,855			1,080,751			1,045,568
Tax payable								80,291			–
Deferred revenue		2,411,133			8,979,352			6,691,080			6,239,296
Amount due to a director		17,556			91,483			518,966			17,662
Amounts due to a related party		280,317			280,317
Income tax payable		89,783			84,672
Current portion of obligations under finance leases		245,863			246,957
Amount due to a related party								280,317			280,317
Current portion of borrowings								301,542			256,758

Total current liabilities		6,598,657			12,264,637			12,150,411			10,056,164

Long-term liabilities:
Obligations under finance leases		1,868,496			2,008,708
Borrowings								1,692,832			1,692,485

TOTAL LIABILITIES		8,467,153			14,273,345			13,843,243			11,748,649

Commitments and contingencies		–			–			–			–

STOCKHOLDERS’ EQUITY
Common stock, 3,000,000,000 authorized common shares of $0.0001 par value, 210,704,160 shares issued and outstanding as of September 30, 2019 and March 31, 2019		21,070			21,070
Additional paid up capital		136,227,920			136,227,920
Deferred compensation		–			(10,936,760	)
Accumulated other comprehensive (loss) income		(141,380	)		20,089
STOCKHOLDERS’ DEFICIT
Common stock, 3,000,000,000 authorized common shares of $0.0001 par value, 210,804,160 shares issued and outstanding as of September 30, 2020 and March 31, 2020								21,080			21,080
Additional paid-in capital								136,427,910			136,427,910
Accumulated other comprehensive loss								(231,577	)		(218,893	)
Accumulated losses		(132,182,904	)		(125,141,278	)		(139,381,678	)		(137,703,504	)
Total NVGI stockholders’ equity		3,924,706			191,041
Total NVGI stockholders’ deficit								(3,164,265	)		(1,473,407	)
Non-controlling interest		(37,892	)		(106,069	)		(54,511	)		(55,117	)
Total deficit								(3,218,776	)		(1,528,524	)
		3,886,814			84,972

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	12,353,967		$	14,358,317
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT							$	10,624,467		$	10,220,125

See accompanying notes to unaudited condensed consolidated financial statements.

NOBLE VICI GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, ~~2019~~2020 AND ~~2018~~2019

(Currency expressed in United States Dollars (“US$”))

~~(UNAUDITED)~~(Unaudited)

	Three months ended September 30,						Six months ended September 30,						Three months ended September 30,						Six months ended September 30,
	2019			2018			2019			2018			2020			2019			2020			2019

REVENUE, NET	$	2,738,254		$	364,352		$	12,610,884		$	963,497		$	119,837		$	2,738,254		$	250,075		$	12,610,884

Cost of revenue		(1,616,242	)		(321,341	)		(6,060,453	)		(417,803	)		(26,109	)		(1,616,242	)		(85,316	)		(6,060,453	)

Gross profit		1,122,012			43,011			6,550,431			545,694			93,728			1,122,012			164,759			6,550,431

Operating expenses:
Sales and marketing		39,730			53,131			338,321			242,146			155,780			39,730			433,581			338,321
General and administrative		1,202,526			562,546			13,192,258			1,117,042			833,430			1,202,526			1,594,499			13,192,258
Total operating expenses		1,242,256			615,677			13,530,579			1,359,188			989,210			1,242,256			2,028,080			13,530,579

LOSS FROM OPERATIONS		(120,244	)		(572,666	)		(6,980,148	)		(813,494	)		(895,482	)		(120,244	)		(1,863,321	)		(6,980,148	)

Other (expense) income:
Interest expense		(22,188	)		(1,011	)		(44,565	)		(1,699	)		(16,567	)		(22,188	)		(38,248	)		(44,565	)
Government subsidy income		–			(14	)		–			1,053			87,027			–			244,108			–
Management fee income		10,861			–			32,873			–			4,538			10,861			8,788			32,873
Sundry income		1,686			11,994			26,046			12,380			852			1,686			19,087			26,046

Total other income (expense)		(9,641	)		10,969			14,354			11,734			75,850			(9,641	)		233,735			14,354

LOSS BEFORE INCOME TAXES		(129,885	)		(561,697	)		(6,965,794	)		(801,760	)		(819,632	)		(129,885	)		(1,629,586	)		(6,965,794	)

Income tax expense		6,629			–			11,224			–			(35,945	)		(6,629	)		(47,982	)		(11,224	)

NET LOSS	$	(136,514	)	$	(561,697	)	$	(6,977,018	)	$	(801,760	)	$	(855,577	)	$	(136,514	)	$	(1,677,568	)	$	(6,977,018	)

Less: Net income attributable to non-controlling interest		48,947			–			64,608			–
Less: Net (loss) income attributable to non-controlling interest														(3,081	)		48,947			606			64,608

Net loss attributable to NVGI		(185,461	)		(561,697	)		(7,041,626	)		(801,760	)	$	(852,496	)	$	(185,461	)	$	(1,678,174	)	$	(7,041,626	)

NET LOSS	$	(136,514	)	$	(561,697	)	$	(6,977,018	)	$	(801,760	)		(855,577	)		(136,514	)		(1,677,568	)		(6,977,018	)

Other comprehensive income:
– Foreign currency translation (loss) gain		(158,572	)		17,176			(161,469	)		59,886
Other comprehensive income (loss):
– Foreign currency translation gain (loss)														6,208			(158,572	)		(12,684	)		(161,469	)

COMPREHENSIVE LOSS	$	(295,086	)	$	(544,521	)	$	(7,138,487	)	$	(741,874	)	$	(849,369	)	$	(295,086	)	$	(1,690,252	)	$	(7,138,487	)

Net loss per share:
– Basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.03	)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.03	)

Weighted average common shares outstanding:
– Basic and diluted		210,704,160			142,818,378			210,704,160			142,741,194			210,804,160			210,704,160			210,804,160			210,704,160

See accompanying notes to unaudited condensed consolidated financial statements.

NOBLE VICI GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, ~~2019~~2020 AND ~~2018~~2019

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

~~(UNAUDITED)~~

Common stock Additional
paid-in Deferred Accumulated
other
comprehensive
income Accumulated Total
stockholders’ equity Non-
controlling Total equity
No. of shares Amount capital compensation (loss) losses (deficit) interest (deficit)

Balance as of April 1, 2019 (audited) 210,704,160 $ 21,070 $ 136,227,920 $ (10,936,760 ) $ 20,089 �� $ (125,141,278 ) $ 191,041 $ (106,069 ) $ 84,972

Amortization of stock-based compensation – – – 10,936,760 – – 10,936,760 – 10,936,760

Foreign currency translation adjustment – – – – (2,897 ) – (2,897 ) – (2,897 )

Net loss for the period – – – – – (6,856,165 ) (6,856,165 ) 15,661 (6,840,504 )

Balance as of June 30, 2019 210,704,160 $ 21,070 $ 136,227,920 $ – $ 17,192 $ (131,997,443 ) $ 4,268,739 $ (90,408 ) $ 4,178,331

Foreign currency translation adjustment (158,572 ) – (158,572 ) 3,569 (155,003 )

Net loss for the period – (185,461 ) (185,461 ) 48,947 (136,514 )
Balance as of September 30, 2019 210,704,160 $ 21,070 $ 136,227,920 $ – $ (141,380 ) $ (132,182,904 ) $ 3,924,706 $ (37,892 ) $ 3,886,814

Balance as of April 1, 2020 (audited) 210,804,160 $ 21,080 $ 136,427,910 $ – $ (218,893 ) $ (137,703,504 ) $ (1,473,407 ) $ (55,117 ) $ (1,528,524 )

Foreign currency translation adjustment – – – – (18,892 ) – (18,892 ) – (18,892 )

Net loss for the period – – – – – (825,678 ) (825,678 ) 3,687 (821,991 )

Balance as of June 30, 2020 210,804,160 $ 21,080 $ 136,427,910 $ – $ (237,785 ) $ (138,529,182 ) $ (2,317,977 ) $ (51,430 ) $ (2,369,407 )

Foreign currency translation adjustment 6,208 – 6,208 – 6,208

Net loss for the period – (852,496 ) (852,496 ) (3,081 ) (855,577 )

Balance as of September 30, 2020 210,804,160 $ 21,080 $ 136,427,910 $ – $ (231,577 ) $ (139,381,678 ) $ (3,164,265 ) $ (54,511 ) $ (3,218,776 )

Six months ended September 30, 2019
Accumulated
other Total
Additional comprehensive stockholders’ Non-
Common stock paid up Deferred income Accumulated equity controlling Total
No. of shares Amount capital compensation (loss) losses (deficit) interest equity

Balance as of April 1, 2019 210,704,160 $ 21,070 $ 136,227,920 $ (10,936,760 ) $ 20,089 $ (125,141,278 ) $ 191,041 $ (106,069 ) $ 84,972

Non-controlling interest – – – – – – – 3,569 3,569

Amortization of stock-based compensation – – – 10,936,760
(107,521
) – 10,829,239 – 10,829,239

Foreign currency translation adjustment – – – – (53,948 ) – (53,948 ) – (53,948 )

Net (loss) income for the period – – – – – (7,041,626 ) (7,041,626 ) 64,608 (6,977,018 )

Balance as of September 30, 2019 210,704,160 $ 21,070 $ 136,227,920 $ – $ (141,380 ) $ (132,182,904 ) $ 3,924,706 $ (37,892 ) $ 3,886,814
Six months ended September 30, 2018
Accumulated
other Total
Additional comprehensive stockholders’ Non-
Common stock paid up (loss) Accumulated equity controlling Total
No. of shares Amount capital income losses (deficit) interest deficit

Balance as of April 1, 2018 140,000,000 $ 14,000 $ – $ (46,440 ) $ (1,131,214 ) $ (1,163,654 ) $ – $ (1,163,654 )

Shares issued for acquisition of legal acquirer 2,663,135 266 – – (319,234 ) (318,968 ) – (318,968 )

Fractional shares from reverse splits 26 – – – – – – –

Capital injection from shareholder – – 152,726 – – 152,726 – 152,726

Share issued for acquisition of subsidiaries 1,020,000 102 2,039,898 – – 2,040,000 – 2,040,000

Non-controlling interest from acquisition – – – – – – 10,872 10,872

Foreign currency translation adjustment – – – 59,886 – 59,886 – 59,886

Net loss for the period – – – – (801,760 ) (801,760 ) – (801,760 )

Balance as of September 30, 2018 143,683,161 $ 14,368 $ 2,192,624 $ 13,446 $ (2,252,208 ) $ (31,770 ) $ 10,872 $ (20,898 )
6
~~NOBLE VICI GROUP, INC.~~
~~CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)~~
~~FOR THREE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018~~
~~(Currency expressed in United States Dollars (“US$”))~~
~~(UNAUDITED)~~
Three months ended September 30, 2019
Accumulated
other Total
Additional comprehensive stockholders’ Non-
Common stock paid up Deferred income Accumulated equity controlling Total
No. of shares Amount capital compensation (loss) losses (deficit) interest equity

Balance as of July 1, 2019 210,704,160 $ 21,070 $ 136,227,920 $ – $ 17,192 $ (131,997,443 ) $ 4,268,739 $ (90,408 ) $ 4,178,331

Foreign currency translation adjustment – – – – (158,572 ) – (158,572 ) 3,569 (155,003 )

Net (loss) income for the period – – – – – (185,461 ) (185,461 ) 48,947 (136,514 )

Balance as of September 30, 2019 210,704,160 $ 21,070 $ 136,227,920 $ – $ (141,380 ) $ (132,182,904 ) $ 3,924,706 $ (37,892 ) $ 3,886,814
Three months ended September 30, 2018
Accumulated
other Total
Additional comprehensive stockholders’ Non-
Common stock paid up (loss) Accumulated equity controlling Total
No. of shares Amount capital income losses (deficit) interest deficit

Balance as of July 1, 2018 (restated) 140,000,000 $ 14,000 $ – $ (3,730 ) $ (1,371,277 ) $ (1,361,007 ) $ – $ (1,361,007 )

Shares issued for acquisition of legal acquirer 2,663,135 266 – – (319,234 ) (318,968 ) – (318,968 )

Fractional shares from reverse splits 26 – – – – – – –

Capital injection from shareholder – – 152,726 – – 152,726 – 152,726

Share issued for acquisition of subsidiaries 1,020,000 102 2,039,898 – – 2,040,000 – 2,040,000

Non-controlling interest from acquisition – – – – – – 10,872 10,872

Foreign currency translation adjustment – – – 17,176 – 17,176 – 17,176

Net loss for the period – – – – (561,697 ) (561,697 ) – (561,697 )

Balance as of September 30, 2018 143,683,161 $ 14,368 $ 2,192,624 $ 13,446 $ (2,252,208 ) $ (31,770 ) $ 10,872 $ (20,898 )

See accompanying notes to unaudited condensed consolidated financial statements.

76

NOBLE VICI GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, ~~2019~~2020 AND ~~2018~~2019
(Currency expressed in United States Dollars (“US$”))
~~(UNAUDITED)~~(Unaudited)

Six months ended September 30,
2020 2019

Cash flow from operating activities:
Net loss $ (1,677,568 ) $ (6,977,018 )
Adjustments to reconcile net loss to net cash (used in) generated from operating activities
Amortization of intangible assets 1,135 137,383
Depreciation of property, plant and equipment 121,472 98,020
Gain on disposal of property, plant and equipment – (3,599 )
Stock compensation expense – 10,829,239

Change in operating assets and liabilities:
Accounts receivable 17,255 5,358,303
Purchase deposits – (502,971 )
Deferred cost (166,463 ) –
Deposits, prepayment and other receivable 25,603 (986,651 )
Accrued liabilities and account payables 895,214 1,637,115
Commission liabilities (6,395 ) (605,397 )
Deferred revenue 204,327 (6,456,749 )
Tax payable 44,911 6,807

Net cash (used in) generated from operating activities (540,509 ) 2,534,482

Cash flow from investing activities:
Proceeds from disposal of property, plant and equipment – 52,596
Purchase of property, plant and equipment (74,679 ) (94,837 )

Net cash used in investing activities (74,679 ) (42,241 )

Cash flow from financing activities:
Advances from (repayment to) a director 501,958 (72,858 )
Proceeds from related parties – 5,452
Repayment of loan (95,692 ) –
Repayment of finance lease (31,951 ) (98,792 )

Net cash generated from (used in) financing activities 374,315 (166,198 )

Foreign currency translation adjustment 41,937 (47,520 )

Net change in cash and cash equivalents (198,936 ) 2,278,523

BEGINNING OF PERIOD 223,527 691,331

END OF PERIOD $ 24,591 $ 2,969,854

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes $ 3,071 $ 92,227
Cash paid for interest $ 38,248 $ 44,565

Six months ended September 30,
2019 2018

Cash flow from operating activities:
Net loss $ (6,977,018 ) $ (801,760 )
Adjustments for:
Amortization of intangible assets 137,383 25,926
Depreciation of property, plant and equipment 98,020 62,933
Stock based compensation 10,829,239 –
Gain on disposal of property, plant and equipment (3,599 ) –

Change in operating assets and liabilities:
Accounts receivable 5,358,303 –
Deposits, prepayment and other receivables (986,651 ) (1,091,592 )
Amounts due from related companies – (142,290 )
Account payables 1,936,453 (389,225 )
Accrued liabilities and other payables (299,338 ) 453,738
Commission liabilities (605,397 ) (27,849 )
Deferred revenue (6,456,749 ) 1,074,024
Purchase deposit (502,971 ) –
Income tax payable 6,807 (312,888 )
Net cash generated from (used in) operating activities 2,534,482 (1,148,983 )

Cash flow from investing activities:
Proceeds from disposal of property, plant and equipment 52,596 –
Purchase of property, plant and equipment (94,837 ) (30,142 )
Purchase of intangible assets – (185,090 )
Cash from acquisition of subsidiaries – 37,576
Net cash used in investing activities (42,241 ) (177,656 )

Cash flow from financing activities:
Capital injection – 152,726
Proceeds from (repayment to) a director (72,858 ) 33,816
Proceeds from related parties 5,452 –
Repayment of finance lease (98,792 ) (54,597 )
Net cash (used in) generated from financing activities (166,198 ) 131,945

Foreign currency translation adjustment (47,520 ) (84,759 )

Net change in cash and cash equivalents 2,278,523 (1,279,453 )

BEGINNING OF PERIOD 691,331 1,536,980

END OF PERIOD $ 2,969,854 $ 257,527

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes $ 92,227 $ –
Cash paid for interest $ 44,565 $ 1,699

See accompanying notes to unaudited condensed consolidated financial statements.

87

NOBLE VICI GROUP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, ~~2019~~2020
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
NOTE —1          – 1     BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.

In the opinion of management, the consolidated balance sheet as of March 31, ~~2019~~2020 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, ~~2019~~2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending March 31, ~~2020~~2021 or for any future period.

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended March 31, 2019.
~~NOTE—~~NOTE – 2     DESCRIPTION OF BUSINESS AND ORGANIZATION

Noble Vici Group, Inc. (the “Company”), formerly known as Gold Union Inc., was incorporated under the laws of the State of Delaware on July 6, 2010 under the name of Advanced Ventures Corp. Effective January 6, 2014, the Company changes its name to “Gold Union Inc.” Effective March 26, 2019   , the Company changes its current name to Noble Vici Group, Inc (“NVGI”).

The Company is currently engaged in the IoT, Big Data, Blockchain and E-commerce business.

9
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
Description of subsidiaries

Name
Place of incorporation
and kind of
legal entity

Principal activities
and place of operation

Particulars of issued/
registered share
capital

Effective interest
held

Noble Vici Pte Ltd Republic of Singapore Holding company S$200,001 100%

Noble Infotech Applications Pte Ltd Republic of Singapore Development of software for interactive digital media and software consultancy S$ 1 100%

Noble Digital Apps Sendirian Berhad Federation of Malaysia Digital apps and big data business MYR1,000 51%

The Digital Agency Pte. Ltd. Republic of Singapore Business and management consultancy services $1 51%

Venvici Pte Ltd

Republic of Singapore Business and management consultancy services on e-commerce service S$100,000 100%

Venvici Ltd

Republic of Seychelles Business and management consultancy services on e-commerce service US$50,000 100%

Ventrepreneur (SG) Pte Ltd Republic of Singapore Online retailing S$10,000 100%

UB45 Pte Limited Republic of Singapore Investment holding S$10,000 100%

ToroV System Private Limited Republic of Singapore IoT Retailing S$10,000 51%

VMore Holding Limited New Zealand New Zealand holding company NZ$10,000 100%

VMore Merchants Pte Ltd Republic of Singapore Merchants onboarding S$1,000 100%

AIM System Pte Ltd Republic of Singapore Affiliate System Provider S$1,000 100%
Name
Place of incorporation
and kind of
legal entity
Principal activities
and place of operation
Particulars of issued/
registered share
capital
Effective interest
held
Noble Vici Pte Ltd Republic of Singapore Singapore holding company S$200,001 100%
NIApplications Pte Ltd Republic of Singapore Development of software for interactive digital media and software consultancy S$1 100%
Noble Digital Apps Sendirian Berhad Federation of Malaysia Digital apps and big data business MYR1,000 51%
The Digital Agency Pte. Ltd. Republic of Singapore Business and management consultancy services S$1 51%
Venvici Ltd
Republic of Seychelles Business and management consultancy services on e-commerce service US$50,000 100%
Ventrepreneur (SG) Pte Ltd Republic of Singapore Online retailing S$10,000 100%
Ventrepreneur (SG) Pte Ltd, Taiwan Branch Taiwan Branch Customer service for ecommerce and merchants servicing N/A N/A
UB45 Pte Limited Republic of Singapore Investment holding S$10,000 100%
VMore System Private Limited Republic of Singapore IoT Retailing S$10,000 100%
VMore Holding Limited New Zealand Investment holding NZ$10,000 100%
VMore Merchants Pte Ltd Republic of Singapore Merchants onboarding S$1,000 100%
AIM System Pte Ltd Republic of Singapore System provider S$1,000 100%

The Company and its subsidiaries are hereinafter referred to as (the “Company”).

108

~~NOBLE VICI GROUP, INC.~~NOTE – 3     GOING CONCERN UNCERTAINTIES
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER~~The accompanying condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
As of September 30, ~~2019~~2020, the Company suffered from an accumulated deficit of $139,381,678 and working capital deficit of $5,184,865. The continuation of the Company as a going concern through September 30, 2021 is dependent upon the continued financial support from its stockholders. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.
~~(Currency expressed~~
These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in ~~United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~the Company not being able to continue as a going concern.

~~NOTE—3~~NOTE – 4     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes.

l· Basis of presentation

These accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

l· Basis of consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

l· Use of estimates and assumptions

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. Significant estimates in the six months ended September 30, 2019 and 2018 include the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of goodwill and the value of stock-based compensation.

l· Purchase deposits
Purchase deposits represent deposit payments made to vendors for procurement, which are interest-free, unsecured and relieved against accounts payable when goods are received by the Company, or refundable in the next twelve months.
· Cash and cash equivalents

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

l ~~Accounts receivable~~

Accounts receivable consist of amounts due from customers in connection with our normal business activities and are carried at sales value less allowance for doubtful accounts. The allowance for doubtful accounts is established to reflect the expected losses of accounts receivable based on past collection history, age, account payment status compared to invoice payment terms and specific individual risks identified. The delinquency of a receivable account is determined based on these factors. The Company does not accrue interest on aged accounts receivable. As of September 30, 2019, there were no allowances for doubtful accounts.
9

l· Intangible assets

Intangible assets represented the acquired game right from a related party, which are stated at acquisition cost, less accumulated amortization. The Company amortizes its intangible assets with definite lives over their estimated useful lives and reviews these assets for impairment when an indicator for potential impairment exists. The Company is currently amortizing its intangible assets with definite lives over periods of 3 years.

l· Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully ~~operational and after taking into account their estimated residual values:~~operational:

Expected useful lives
Building 38 years or lesser than term of lease
Leasehold improvements ~~3-10~~3 – 10 years or lesser than term of lease
Furniture and fittings 3 years
Office equipment and computers ~~1- 3~~1 – 5 years
Motor vehicle 23 – 3.33 years
11
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~

Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

Depreciation expense for the three months ended September 30, 2020 and 2019 were $72,234 and ~~2018 were~~ $48,255, ~~and $31,653, as part of operating expenses,~~ respectively.

Depreciation expense for the six months ended September 30, 2020 and 2019 were $121,472 and ~~2018 were~~ $98,020, ~~and $62,933, as part of operating expenses,~~ respectively.

l· Impairment of long-lived assets

In accordance with Accounting Standards Codification ("ASC") Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets ”,”, the Company reviews its long-lived assets, including property, plant and equipment, as well as intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable or that useful lives are no longer appropriate. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There has been no impairment charge as of September 30, ~~2019.~~2020.

l· Revenue recognition

~~Revenue is recognized when it is realized or realizable and earned, in accordance with ASC 605~~The Company adopted Accounting Standards Update (“ASU”) 2014-09, ~~Revenue Recognition~~ ~~(“ASC 605”).~~ Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). Under ASU 2014-09, the ~~sale~~Company applies the following five steps in order to determine the appropriate amount of ~~products~~revenue to be recognized as it fulfils its obligations under each of its agreements:
• identify the contract with a customer;
• identify the performance obligations in the contract;
• determine the transaction price;
• allocate the transaction price to performance obligations in the contract; and
• recognize revenue as the performance obligation is satisfied.
10
The Company accounts for a contract with a customer when the contract is ~~recognised when all~~committed in writing, the rights of the ~~following criteria~~parties, including payment terms, are ~~met: (1) persuasive~~identified, the contract has commercial substance and consideration to collect is substantially probable.
The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon delivery of products. Persuasive evidence of an arrangement ~~exists; (2) delivery has occurred or services have been performed; (3)~~is demonstrated via sales contract and invoice; and the ~~seller’s~~sales price to the ~~buyer~~customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or ~~determinable;~~volume incentive. The Company recognizes revenue when title and ~~(4)~~ownership of the goods are transferred upon shipment to the customer by the Company to consider control of goods are transferred to its customer and collectability of payment is reasonably assured. ~~Product sales~~The Company’s revenues are ~~recorded net of good and service taxes and product returns.~~recognized at a point in time after all performance obligations are satisfied.

The Company records revenues from the sales of third-party products on a “gross” basis pursuant to ASC 605-45Revenue Recognition - Principal Agent Considerations, when we are the primary obligor in the arrangement with the end customer and have the risks and rewards as principal in the transaction, such as responsibility for fulfillment, retaining the risk for collection, and establishing the price of the products. If these indicators have not been met, or if indicators of net revenue reporting specified in ASC 605-45 are present in the arrangement, revenue is recognized net of related direct costs.

Product sales are recorded net of good and service taxes and product returns.
l· Commission credits

The Company maintains a membership program, whereby certain members earn commission credits, based on the sales volume of certain other members who are sponsored directly or indirectly by the member. Commission credits are redeemable on future spending of the products purchased or playing online games. Commission credits are recorded and classified as operating expense when the products are delivered and revenue is recognized. The estimated liability for unredeemed commission credit is included in commission liability on the accompanying balance sheets. Management reviews the adequacy for the accrual for unredeemed commission credits by periodically evaluating the historical redemption and projected trends.

l· Deferred revenue and costs
Deferred revenue and deferred cost of goods sold result from transactions where the Company has shipped product for which all revenue recognition criteria under the five-step model have not yet been met. Though these contracts are not considered a contract under ASC 606, they are legally enforceable, and the Company has an unconditional and immediate right to payment after the Company has shipped products, therefore, the Company recognizes a receivable and a corresponding deferred revenue upon shipment. Deferred cost of goods sold includes direct inventory costs. Once all revenue recognition criteria under the five-step model have been met, the deferred revenues and associated cost of goods sold are recognized.
· Income taxes

The Company adopted the ASC 740Income tax provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13.

12
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.

11
l· Uncertain tax positions

The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the ~~three and~~ six months ended September 30, ~~2019~~2020 and ~~2018.~~2019.

l· ~~Finance leases~~Leases

The Company adopted Topic 842, Leases ~~that transfer substantially all~~(“ASC 842”), using the ~~rewards~~modified retrospective approach through a cumulative-effect adjustment and ~~risks~~utilizing the effective date of ~~ownership~~January 1, 2017 as its date of initial application.
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets.
ROU assets represent the right to ~~the lessee, other than legal title, are accounted~~use an underlying asset for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term ~~(ii)~~and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ~~containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv)~~ROU assets and liabilities are recognized at commencement date based on the present value of ~~the minimum~~ lease payments ~~exceeding 90%~~over the lease term. As most of the ~~fair value. At the inception of a finance lease,~~Company’s leases do not provide an implicit rate, the Company asgenerally use the ~~lessee records an asset and an obligation at an amount equal to~~incremental borrowing rate based on the ~~present value~~estimated rate of ~~the minimum lease payments. The leased asset is amortized~~interest for collateralized borrowing over ~~the shorter~~a similar term of the lease ~~term or its estimated useful life if title does not transfer to the Company, while the leased~~payments at commencement date. The operating lease ROU asset ~~is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent~~also includes any lease payments made ~~during~~and excludes lease incentives. The lease terms may include options to extend or terminate the lease ~~term are allocated between~~when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a ~~reduction in~~straight-line basis over the ~~obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30,~~~~“Imputation of Interest”~~.lease term.

l· Foreign currencies translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement of operations.

The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company’s operating subsidiaries in Singapore and Seychelles maintain their books and record in its local currency, Singapore Dollars (“S$”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity.

Translation of amounts from S$ into US$1 has been made at the following exchange rates for the ~~period~~six months ended September 30, ~~2019~~2020 and ~~2018:~~2019:

September 30, 2019 September 30, 2018
Period-end S$:US$1 exchange rate 1.3821 1.3666
Period average S$:US$1 exchange rate 1.3689 1.3507
13
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
September 30, 2020 September 30, 2019
Period-end S$:US$1 exchange rate 1.3692 1.3821
Period average S$:US$1 exchange rate 1.3655 1.3689

l· Comprehensive income

ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying consolidated statements of changes in stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

12
l· Segment reporting

ASC Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in consolidated financial statements. For the three and six months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company operates in one reportable operating segment in Singapore and Asian Region.

l· Related parties

The Company follows the ASC 850-10,Related Party for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the consolidated financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

l· Commitments and contingencies

The Company follows the ASC 450-20,Commitments to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.
14
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

13
l· Fair value of financial instruments

The Company follows paragraph 825-10-50-10 of the FASB ~~ASC~~Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB ~~ASC~~Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB ~~ASC~~Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB ~~ASC~~Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB ~~ASC~~Accounting Standards Codification are described below:

Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, approximate their fair values because of the short maturity of these instruments.

15
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
l· Recent accounting pronouncements

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018, December 2018 and March 2019, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10 & 11, ASU 2018-20 and ASU 2019-01, respectively, which contain modifications and improvements to ASU 2016-02. The amendments provide entities with an additional (and optional) transition method to adopt the new leases standard. Under the Optional Transition Method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. On January 1, 2019, the Company adopted ASC Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method. In addition, the Company elected the land easement transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. The adoption did not impact the Company’s previously reported consolidated financial statements nor did it result in a cumulative effect adjustment to retained earnings as of January 1, 2019.
In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment. ASU 2018-07 aligns the accounting for share based payments granted to non-employees with that of share based payments granted to employees. The Company ~~early adopted ASU No. 2018-07 in~~has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the ~~fourth quarter of 2018 and there was no cumulative effect of adoption. The~~future adoption of ~~this ASU did not have~~any such pronouncements may be expected to cause a material impact on ~~our~~its financial ~~position,~~condition or the results of ~~operations, cash flows, or presentation thereof.~~its operations.

~~NOTE—4          REVENUE~~
Six months ended September 30,
2019 2018

Products sales, as principal $ 7,662,846 $ 1,783
Products sales, as agent (net basis) 3,289,494 700,813
Training service 1,249,510 –
Other operating revenue 409,034 260,901
$ 12,610,884 $ 963,497
~~NOTE—~~NOTE – 5     INTANGIBLE ASSETS

September 30, 2019 March 31, 2019
(Audited)
Gaming right and software
Gross carrying value $ 1,214,398 $ 1,238,254
Less: accumulated amortization (795,120 ) (671,992 )
Net carrying value 419,278 566,262
Non-amortising portion – –

Intangible assets, net $ 419,278 $ 566,262
16
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
September 30, 2020 March 31, 2020
(Audited)
Gaming right and software
Gross carrying value $ 6,792 $ 6,533
Less: accumulated amortization (1,510 ) (363 )

Intangible assets, net $ 5,282 $ 6,170

Amortization expense for the three months ended September 30, 2020 and 2019 were $586 and ~~2018 were~~ $68,388, ~~and $14,778, as part of operating expenses,~~ respectively.

Amortization expense for the six months ended September 30, 2020 and 2019 were $1,135 and ~~2018 were~~ $137,383, ~~and $25,926, as part of operating expenses,~~ respectively.
14

The following table outlines the annual amortization expense for the next ~~two~~three years:

Years ending September 30:
2020 $ 272,149
2021 147,129

Total $ 419,278
Years ending September 30:
2021 $ 2,264
2022 2,264
2023 754

Total $ 5,282

~~NOTE—~~NOTE – 6     AMOUNT DUE ~~FROM~~TO A ~~THIRD PARTY~~DIRECTOR

As of September 30, 2019, the Company made temporary advance of $217,064 to a third party, which is secured by the stocks held and becomes mature on or before 31 December 2019. Interest is charged at the rate of 5% per annum.
~~NOTE—7          AMOUNTS DUE TO A DIRECTOR~~
~~As of September 30, 2019,~~2020, amount due to a director of the Company, Mr. TANG Wai Chong Eldee, which was unsecured, interest-free and ~~had~~has no fixed terms of repayment. Imputed interest from related party loan is not significant.

~~NOTE—8          AMOUNTS~~NOTE – 7     AMOUNT DUE TO A RELATED PARTY

As of September 30, ~~2019,~~2020, the Company owed the amount of $280,317 due to the former shareholder of the Company, Miss Kao. The balance is unsecured, interest-free and has no fixed terms of repayment. Imputed interest from related ~~party~~parties’ loan is not significant.

~~NOTE—9         OBLIGATIONS UNDER FINANCE LEASES~~NOTE – 8     BORROWINGS
As of
September 30, 2020 March 31, 2020
(Audited)
Current portion
Loan $ 248,125 $ 220,283
Lease liabilities 53,417 36,475
301,542 256,758

Non-current portion
Loan 1,603,272 1,652,120
Lease liabilities 89,560 40,365
1,692,832 1,692,485

$ 1,994,374 $ 1,949,243

The ~~Company purchased several motor vehicles and properties under finance lease agreements with the effective~~loan is secured by a mortgage over leasehold building. The loan bears interest rate ~~ranging from~~of 3.75% ~~to 22.8%~~flat per annum ~~due through March 10, 2026, with principal~~ and ~~interest payable monthly.~~is repayable in 120 equal month installments commencing from October 1, 2018. The ~~obligations under the finance leases are as follows:~~
September 30, 2019 March 31, 2019

Finance lease $ 2,893,668 $ 3,089,747
Less: interest expense (779,309 ) (834,082 )

Net present value of finance lease $ 2,114,359 $ 2,255,665

Current portion $ 245,863 $ 246,957
Non-current portion 1,868,496 2,008,708

Total $ 2,114,359 $ 2,255,665
17
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
~~As of September 30, 2019, the maturities of the finance leases for each of the five years and thereafter are as follows:~~
Years ending September 30:
2020 $ 245,863
2021 245,863
2022 237,637
2023 234,324
2024 234,324
Thereafter 916,348

Total $ 2,114,359
Included in the consolidated balance sheet as of September 30, 2019 under property, plant and equipment are cost and accumulated depreciation related to capitalized leases of $3,458,640 and $115,871, respectively. Included in the consolidated balance sheet as of September 30, 2018 under property, plant and equipment are cost and accumulated depreciation related to capitalized leases of $260,000 and $89,577, respectively.
~~The building under finance lease~~loan is personally guaranteed by the director of the Company, Eldee Tang.

The Company has financed its motor vehicles, office premises and office equipment under finance lease agreements with the fixed interest rate ranging from 2.80% to 7.98% per annum, due through 2020 and 2026, with principal and interest payable monthly. These leases have remaining lease terms of 2   months to 65 months.
~~NOTE—10~~
15
Right of use assets are included in the condensed consolidated balance sheet are as follows:
As of
September 30, 2020 March 31, 2020
(Audited)
Non-Current assets
Right-of-use assets, net of amortization (included in property, plant and equipment) $ 224,449 $ 95,368
The maturities of lease liabilities and loan are as follows:
Lease liabilities Loan
Years ending September 30:
2021 $ 61,308 $ 334,014
2022 49,030 314,929
2023 38,620 314,929
2024 9,360 314,929
2025 4,795 314,929
Thereafter 1,968 944,784

Total lease payments 165,081 2,538,514
Less: Imputed interest (22,104 ) (687,117 )

Present value of lease liabilities
$ 142,977 $ 1,851,397
NOTE – 9     INCOME TAX

The Company generated an operating loss for the six months ended September 30, 2020 and 2019 and ~~2018, recorded~~did not record income tax ~~expenses of $11,224 for the six months ended September 30, 2019.~~expense. The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows:

United States of America

NVGI is registered in the State of Delaware and is subject to United States of America tax law. No provision for income taxes have been made as NVGI has generated no taxable income for the periods presented. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the period presented.

As of September 30, ~~2019,~~2020, the Company incurred ~~$885,009~~$1,834,085 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in ~~2039,~~2040, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of ~~$185,852~~$385,158 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

Republic of Singapore

The Company’s operating subsidiaries are registered in Republic of Singapore and are subject to the Singapore corporate income tax at a standard income tax rate of 17% on the assessable income arising in Singapore during its tax year.

The Company’s subsidiary in Republic of Seychelles is also subject to the Singapore corporate income tax regime.

1816

~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~

The reconciliation of income tax rate to the effective income tax rate based on income ~~(loss)~~ before income taxes for the six months ended September 30, ~~2019~~2020 and ~~2018~~2019 are as follows:

Six months ended September 30, Six months ended September 30,
2019 2018 2020 2019

Income (loss) before income taxes $ 3,962,418 $ (801,760 )
(Loss) income before income taxes $ (1,571,900 ) $ 3,962,418
Statutory income tax rate 17% 17% 17% 17%
Income tax expense at statutory rate 673,611 (136,299 ) (267,223 ) 673,611
Tax effect of (non-taxable income) non-deductible expenses (662,387 ) 136,299
Tax effect of non-taxable income (4,361 ) (662,387 )
Tax loss not recognized as deferred tax 319,566 –

Income tax expense $ 11,224 $ – $ 47,982 $ 11,224


~~NOTE—11~~NOTE – 10     RELATED PARTY TRANSACTIONS

From time to time, the stockholder and director of the Company advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand. The imputed interest on the loan from a related party was not significant.

Royalty charges and marketing expenses paid to a related company totaled ~~$140,774~~$1,976 and ~~$53,131,~~$140,774, for the three months ended September 30, ~~2019~~2020 and ~~2018.~~2019.

Royalty charges and marketing expenses paid to a related company totaled ~~$331,356~~$6,803 and ~~$242,146,~~$331,356, for the six months ended September 30, ~~2019~~2020 and ~~2018.~~2019.

Apart from the transactions and balances detailed elsewhere in these accompanying consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented.

~~NOTE—12~~NOTE – 11     CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a)       Major customers

For the three and six months ended September 30, ~~2019~~2020 and ~~2018,~~2019, there is no ~~single~~individual customer ~~representing more than~~exceeding 10% of the Company’s revenue.
19
~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
~~(b)       Major vendors~~
For the three months ended September 30, 2019, this is one single vendor representing more than 10% of the Company’s purchase. This vendor (Vendor A) accounted for 64% of the Company’s purchase amounting to $1,035,549 with $1,900,529 of accounts payable.
Three Months Ended
September 30, 2019
Vendors Purchase Accounts Payable
Vendor A $ 1,035,549 $ 1,900,529
~~Eldee Tang, our Chief Executive Officer and Director, owns 49% of Vendor A.~~
~~For the three months ended September 30, 2018, there were no vendors representing more than 10% of the Company’s purchase.~~
For the six months ended September 30, 2019, this is one single vendor representing more than 10% of the Company’s purchase. This vendor (Vendor A) accounted for 17% of the Company’s purchase amounting to $1,035,549 with $1,900,529 of accounts payable.
Six Months Ended
September 30, 2019
Vendors Purchase Accounts Payable
Vendor A $ 1,035,549 $ 1,900,529

~~Eldee Tang, our Chief Executive Officer and Director, owns 49% of Vendor A.~~
~~For the six months ended September 30, 2018, there were no vendors representing more than 10% of the Company’s purchase.~~

The Company considers its business activities to constitute one single reportable segment. The Company’s chief operating decision makers use consolidated results to make operating and strategic decisions. The geographic distribution analysis of the Company’s revenues by region is as follows:

Three months ended
September 30, Three months ended September 30,
2019 2018 2020 2019

China $ 121,954 $ 252,557 $ – $ 121,954
Singapore 1,917,996 110,786 108,411 1,917,996
Malaysia 400,551 – 4,867 400,551
Philippines 44,014 – 743 44,014
Thailand 46,056 – 1,927 46,056
United States 169 –
Indonesia 90,916 – 2,389 90,916
Other countries in Asia Pacific 116,767 1,009 1,331 116,767

$ 2,738,254 $ 364,352 $ 119,837 $ 2,738,254

2017

~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
Six months ended
September 30, Six months ended September 30,
2019 2018 2020 2019

China $ 216,630 $ 700,813 $ – $ 216,630
Singapore 5,471,751 260,901 223,227 5,471,751
Malaysia 3,647,045 – 9,227 3,647,045
Philippines 1,646,602 – 1,441 1,646,602
Thailand 797,854 – 3,365 797,854
United States 1,095 –
Indonesia 397,016 – 4,619 397,016
Other countries in Asia Pacific 433,986 1,783 7,101 433,986

$ 12,610,884 $ 963,497 $ 250,075 $ 12,610,884

All of the Company’s long-lived assets are located in Singapore.

(b) Major vendors

~~(c)       Interest rate risk~~For the three and six months ended September 30, 2020 and 2019, there are no vendors representing more than 10% of the Company’s purchase, respectively.
(c) Interest rate risk

As the Company has no significant interest-bearing assets, the Company’s income and operating cash flows are substantially independent of changes in market interest rates.

The Company’s interest-rate risk arises from borrowings under finance ~~leases.~~lease and mortgage loan. The Company manages interest rate risk by varying the issuance and maturity dates variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of September 30, ~~2019,~~2020, borrowing under finance lease ~~was~~and mortgage loan were at fixed rates.

~~(d)       Economic and political risk~~
(d) Economic and political risk

The Company’s major operations are conducted in Republic of Singapore. Accordingly, the political, economic, and legal environments in Singapore, as well as the general state of Singapore’s economy may influence the Company’s business, financial condition, and results of operations.

~~(e)       Exchange rate risk~~
(e) Exchange rate risk

The Company cannot guarantee that the current exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of S$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.


2118

~~NOBLE VICI GROUP, INC.~~
~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~
~~FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019~~
~~(Currency expressed in United States Dollars (“US$”), except for number of shares)~~
~~(UNAUDITED)~~
~~NOTE—13~~NOTE – 12     COMMITMENTS AND CONTINGENCIES

~~(a)       Operating lease commitments~~
During the three and six months ended September 30, 2019 and 2018, the Company leased its properties under operating leases. The leases typically commence for a period ranging for 1 to 3 years. None of the leases includes contingent rentals.
(a) Capital commitment

As of September 30, ~~2019,~~2020, the Company has ~~future rental payables under non-cancellable operating leases of $37,473~~no material capital commitments in the next twelve months.

~~(b)       Capital commitment~~
(b) Legal proceeding

OnIn April ~~1, 2019,~~2020, the Company entered into a binding Memorandum of Understanding (the “MOU”) with Eldee Wai Chong Tang, our Chief Executive Officer and Director, whereby we agreed to reorganize Elusyf Global Private Limited, a Singapore corporation (“EGPL”), into the Company in accordance with the termsreceived invoices from each of the ~~MOU. Upon~~Public Company Accounting Oversight Board (“PCAOB”) and the ~~consummation~~Financial Accounting Standards Board (“FASB”) in the amounts of ~~such reorganization, EGPL will become a 51% owned subsidiary~~$702,600 and $92,100, respectively, for our share of the ~~Company. EGPL is engaged in~~PCAOB and FASB Issuer Accounting Support Fee for calendar year 2020. The fees were due May 18, 2020. The Company has petitioned the ~~business of marketing~~PCAOB and ~~distribution of health~~FASB to review its fee assessments and beauty products, such as Elusyf Mitos Activa and Cell Activa Phytomask, among other offerings, through its wide network of channels. The consummation of the acquisition is subject to the satisfactory completion of financial, tax and legal due diligence of EGPL by the Company, among other conditions. The Company is in the process of ~~completing~~review. The Company believes that there is a material likelihood that it will not prevail, and that it will be required to pay all assessed fees.
In accordance with applicable accounting guidance, the Company records accruals for certain of its ~~due diligence review~~outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred, and the amount of ~~EGPL~~loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and ~~has~~reasonably estimable. The Company discloses the amount of the accrual if the financial statements would be otherwise misleading.
When a loss contingency is not ~~yet consummated~~both probable and estimable, the ~~acquisition.~~Company does not establish an accrued liability. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then the Company discloses an estimate of the possible loss or range of loss, if such estimate can be made or discloses that an estimate cannot be made.

The assessments whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, often involve a series of complex judgments about future events. Management is often unable to estimate a range of reasonably possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss, fine, penalty or business impact, if any.
The Company expects that the aggregate range of reasonably possible losses for such legal proceeding is likely to range from approximately $800,000 and upwards if penalties or interest are assessed against us in the event that the Company is unable to timely pay assessed amounts. It is probable that $800,000 will be payable by March 31, 2021. The estimated aggregate range of reasonably possible losses is based upon currently available information for those proceedings in which the Company is involved, taking into account the Company’s ~~director, Mr. Tang owns Fifty-Nine Thousand Nine Hundred Eighty (59,980) ordinary shares~~best estimate of ~~EGPL, representing 51%~~such losses for those cases for which such estimate can be made. Those matters for which an estimate is not possible are not included within this estimated range. Therefore, such range represents what the Company believes to be an estimate of possible loss only for those matters meeting such criteria. It does not represent the Company’s maximum loss exposure.
Except as set forth above, there are no material pending legal proceedings to which the Company or its subsidiaries are a party or to which any of its or their property is subject, nor are there any such proceedings known to be contemplated by governmental authorities. None of the ~~issued and outstanding securities~~Company’s directors, officers, affiliates or any owner of ~~EGPL. It~~record or beneficially of more than 5% of our common stock, or any associate of any of the foregoing, is ~~considered as related party transaction.~~involved in a proceeding adverse to its business or has a material interest adverse to its business.

~~NOTE—14~~NOTE – 13     SUBSEQUENT EVENTS

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before consolidated financial statements are issued, the Company has evaluated all events or transactions that occurred after September 30, ~~2019,~~2020, up through ~~November 14, 2019,~~the date the Company issued the unaudited condensed consolidated financial statements. During the period, the Company ~~has the~~did not have any material recognizable subsequent ~~events, as follows:~~
On October 8, 2019, the Company approved the issuance of 100,000 shares of its common stock to its legal counsel for legal services provided to the Company. These shares were subsequently issued on October 18, 2019.
events.

2219

ITEM 2        Management’s Discussion and Analysis of Financial Condition and Results of Operations
~~Forward-looking statements~~
The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and the related notes thereto included elsewhere in this quarterly report on Form 10-Q. This quarterly report on Form 10-Q contains certain forward-looking statements and our future operating results could differ materially from those discussed herein. Certain statements contained in this discussion, including, without limitation, statements containing the words "believes," "anticipates," "expects" and the like, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). However, as we issue “penny stock,” as such term is defined in Rule 3a51-1 promulgated under the Exchange Act, we are ineligible to rely on these safe harbor provisions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions of the forward-looking statements contained herein to reflect future events or developments.
~~Currency and exchange rate~~
Unless otherwise noted, all currency figures quoted as “U.S. dollars”, “dollars” or “$” refer to the legal currency of the United States. Throughout this report, assets and liabilities of the Company’s subsidiaries are translated into U.S. dollars using the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity.

Overview

We were incorporated under the laws of the State of Delaware on July 6, 2010 under the name “Advanced Ventures Corp.” Effective January 6, 2014, we changed our name to “Gold Union Inc.” Effective March 26, 2018, we changed our name to Noble Vici Group, Inc. and our trading symbol was changed to NVGI. On August 8, 2018, we consummated the acquisition of Noble Vici Private Limited, a corporation organized under the laws of Singapore (“NVPL”), which was wholly owned by Eldee Tang, our sole director and Chief Executive Officer. NVPL is engaged in the IoT, Big Data, Blockchain and E-commerce business. As a result of our acquisition of NVPL, we entered into the IoT, Big Data, Blockchain and E-commerce business. We are headquartered in Singapore and operate a branch office in Taiwan. Certain of our resellers are operating “V-More” branded satellite offices in Shenzhen, China.

History

~~On July 27, 2010,~~As Advanced Ventures Corp., we ~~entered into an exclusive worldwide~~acquired a patent ~~sale agreement (the “Patent Transfer and Sales Agreement”) with Ilanit Appelfeld (the “Seller”), in relation to a patented technology, U.S.~~(U.S. Patent Number: ~~6,743,209~~6,743,209) (the “Patent”), for a catheter with ana integral anchoring mechanism. The patent and technology were transferred to us in exchange of payment to Ilanit Appelfeld of $17,500 (seventeen thousand five hundred United States Dollars), according to the terms and conditions specified in the Patent Transfer and Sales Agreement related to U.S. Patent Number: 6,743,209.
During the second quarter of 2011 the Company raised gross proceeds of $75,000 pursuant to an effective Form S-1 Registration Statement and issued 37,500,000 post forward stock split shares of common stock that were registered pursuant to the Form S-1 Registration Statement.
23
Effective March 7, 2012, we increased the number of our authorized shares of common stock to three billion shares (3,000,000,000) and engaged in a forward stock split of its common shares whereby each one share of our common stock was split into fifteen shares of our common stock.
During the second fiscal quarter of 2014, we elected to discontinue our business of exploiting the Patent and began to consider other business opportunities that may bring quicker and greater value to our stockholders. We initially considered entering into the business of trading precious metal bullion primarily in the Asia Pacific region. Therefore, effective January 6, 2014, we changed our name to “Gold Union Inc.” to more adequately reflect our initial intended business operations.
Effective March 7, 2012, we increased the number of our authorized shares of common stock to three billion shares (3,000,000,000) and engaged in a forward stock split of its common shares whereby each one share of our common stock was split into fifteen shares of our common stock.

On December 31, 2015, we consummated a Share Exchange Agreement with G.U. International Limited, a limited company incorporated under the laws of the Republic of Seychelles and our wholly owned subsidiary (“GUI”), and Kao Wei-Chen, an individual representing herself and 8 other individuals (collectively, the “Golden Corridor Shareholders”), which agreement was amended several times to extend the closing date of the acquisition (collectively, the “Share Exchange Agreement”). Pursuant to the Share Exchange Agreement, we, through GUI, purchased 480 shares of Phnom Penh Golden Corridor Trading Co. Limited (the “GC Shares”), from 9 private Golden Corridor Shareholders, representing 48% of the issued and outstanding shares of common stock of Golden Corridor. As consideration, we issued to the Golden Corridor Shareholders 2,500,000,000 shares of our common stock, at a value of US $0.002 per share, for an aggregate value of US $5,000,000.

As a result of our acquisition of the GC Shares, we ceased our metal bullion trading business and entered into the real estate development and rental business located in the Kingdom of Cambodia. Golden Corridor owns three parcels of land located at National Road 44, Phum Phkung, Chbarmorn Commune, Chbarmorn District, Kampong Speu Province, Kingdom of Cambodia, measuring an aggregate of 172,510 square meters (collectively, the “Properties”). We intended to develop the Properties into an industrial park for rental income.

Due to difficulties in entering the real estate development and rental business, on February 2, 2018, we engaged in a corporate reorganization and distributed the GC Shares to our shareholders. On March 18, 2018, our subsidiary, G.U. Asia Limited was dissolved.

Change in Control

On March 27, 2018, Lim Yew Chuan, the director, Chief Executive Officer, Chief Financial Officer and Secretary of Noble Vici Group, Inc. (the “Company”), resigned from all of his positions as director, Chief Executive Officer, Chief Financial Officer and Secretary of the Company. Mr. Lim’s decision to leave the Board and his executive officer positions with the Company is due to personal reasons and not due to any dispute or disagreement with the Company on any matter relating to the Company's operations, policies or practices.
Effective March 27, 2018, the following individuals were appointed to serve in the capacities set forth next to their names until his successor(s) shall be duly elected or appointed, unless he resigns, is removed from office or is otherwise disqualified from serving as an executive officer or director of the Company:
~~Name~~ ~~Office(s)~~
~~Eldee Tang~~ ~~Chief Executive Officer and Director~~
~~Sin Chi Yip~~ ~~Chief Financial Officer~~
~~Jon Yee Chuan Lim~~ ~~Chief Operating Officer and Secretary~~
On January 29, 2018, Eldee Tang entered into Share Sale Agreements with four shareholders and former affiliates of the Company to purchase up to 1,675,000,000 shares of the Company’s common stock at a per share purchase price of US$0.00008, for an aggregate price of US$134,000. On June 15, 2018, the Company effectuated a 1 for 1,000 reverse stock split whereby every 1,000 shares of the Company’s common stock were reduced to one share. The parties effectuated Mr. Tang’s purchase of 750,000 shares such securities (expressed on a post reverse split basis) effective June 15, 2018. Mr. Tang ~~expects~~hopes to purchase the balance of the 925,000 shares from Kao Wei-Chen, a former affiliate of the Company, in the near future. The foregoing description of the Share Sale Agreement with Kao Wei-Chen is qualified in its entirety by reference to such agreement which is filed as Exhibit 10.2 to this Quarterly Report and is incorporated herein by reference.

2420

In connection with the contemplated change in control, on March 27, 2018, Lim Yew Chuan, the director, Chief Executive Officer, Chief Financial Officer and Secretary of Noble Vici Group, Inc. (the “Company”), resigned from all of his positions as director, Chief Executive Officer, Chief Financial Officer and Secretary of the Company. Concurrently, Eldee Tang was appointed to serve as the Chief Executive Officer and Director of the Company, together with other members of the new management team.

Effective June 15, 2018, we:

1. Increased the Company’s authorized capital from 3,000,000,000 shares of common stock, par value $0.0001 (the “Common Stock”), to 3,050,000,000 shares, consisting of 3,000,000,000 shares of Common Stock and 50,000,000 shares of undesignated preferred stock, par value $0.0001 (the “Preferred Stock”);
2. Effected a 1-for-1000 reverse stock split of our issued and outstanding Common Stock (the “Reverse Stock Split”);
3. Elected not to be governed by Section 203 of the Delaware General Corporation Law;
4. Changed the Company’s fiscal year end from December 31st to March 31st, for all purposes (including tax and financial accounting);
5. Adopted Amended and Restated Certificate of Incorporation for the purpose of consolidating the amendments to the Company’s Certificate of Incorporation; and
6. Adopted the Amended and Restated Bylaws of the Company.

Acquisition of NVPL, TDA and NDA

On August 8, 2018, we consummated the acquisition of Noble Vici Private Limited, a corporation organized under the laws of Singapore (“NVPL”), in accordance with the terms of a Share Exchange Agreement. NVPL is wholly owned by Eldee Tang, our Chief Executive Officer and Director. Pursuant to the Share Exchange Agreement, we purchased One Million and One (1,000,001) shares of NVPL (the “NVPL Shares”), representing all of the issued and outstanding shares of common stock of NVPL, in consideration of One Hundred Forty Million (140,000,000) shares of our common stock, at a value of US $1.70 per share, for an aggregate value of US $238,000,000. It is our understanding that Mr. Tang is not a U.S. Person within the meaning of Regulations S. Accordingly, the Shares are being sold pursuant to the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended, Regulation D and Regulation S promulgated thereunder.
~~Acquisition~~ As a result of ~~TDA~~our acquisition of NVPL, we entered into the IoT, Big Data, Blockchain and ~~NDA~~E-commerce business.

On September 17, 2018, we consummated the acquisition of a 51% controlling interest in The Digital Agency Private Limited, a private limited company organized under the laws of Singapore (“TDA”), and a start-up digital marketing company, in accordance with the terms of that certain Share Exchange Agreement by and among the Company, ~~Noble~~NIApplications Private Limited (formerly, “Noble Infotech Applications Private ~~Limited,~~Limited”), a private limited company organized under the laws of Singapore and our wholly owned subsidiary (“NIA”), TDA and Mok Jo Han (“the “TDA Share Exchange Agreement”). Pursuant to the terms of the TDA Share Exchange Agreement, we acquired 51 ordinary shares of TDA, representing approximately fifty-one percent (51%) of the issued and outstanding ordinary shares of TDA, in exchange for 510,000 shares of common stock of the Company, par value $0.0001 (the “TDA Shares”), representing an exchange ratio of ONE (1) ordinary share of TDA for Ten Thousand (10,000) shares of common stock of the Company, at a valuation of $2.00 per share of the Company, for an aggregate value of $1,020,000. It is our understanding that Mr. Mok is not a U.S. Person within the meaning of Regulations S. The TDA Shares were sold pursuant to the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation S promulgated thereunder.

On September 17, 2018, we consummated the acquisition of a 51% controlling interest in Noble Digital AppsSendirian Berhad,, a private limited company organized under the laws of Malaysia (“NDA”), and a start-up digital apps and big data company in accordance with the terms of that certain Share Exchange Agreement by and among the Company, NIA, NDA, Cheng Bok Woon, Tan Yew Fui, and Yong Swee Sun (“the “NDA Share Exchange Agreement”). Pursuant to the terms of the NDA Share Exchange Agreement, we acquired 510 ordinary shares of NDA, representing approximately fifty-one percent (51%) of the issued and outstanding ordinary shares of NDA, in exchange for 510,000 shares of common stock of the Company, par value $0.0001 (the “NDA Shares”), representing an exchange ratio of ONE (1) ordinary share of NDA for One Thousand (1,000) shares of common stock of the Company, at a valuation of $2.00 per share of the Company, for an aggregate value of $1,020,000. It is our understanding that Mr. Cheng, Mr. Tan and Mr. Yong are not U.S. Person within the meaning of Regulations S. The NDA Shares were sold pursuant to the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation S promulgated thereunder.


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Issuance of shares to sales affiliates

On September 17, 2018, and September 25, 2018, we approved the issuance of Nine Million One Hundred Thirty Five Thousand Seven Hundred Ninety Four (9,135,794) shares and Five Hundred Sixty Seven Thousand Sixty-Four (567,064) shares of our common stock, par value $0.0001, respectively, representing a total of approximately 6.3% of our issued and outstanding common stock, at a per share price of One Dollars and Ninety Nine Cents (US $1.99), to approximately 460 sales associates for prior sales and marketing services provided to us and our subsidiaries and affiliates. As a condition of receipt of such securities, each recipient executed a Stockholder Representation Letters, which contained, among other things, restrictions prohibiting the transfer of such securities for a minimum period of 18 months up to a maximum period of 66 months after the execution of such letter. For ease of administration, the recipients appointed Noble Infotech Limited (“NIL”) as nominee to hold, manage, administer and effectuate the distribution of such securities upon the expiration of the applicable restricted periods. The shares were issued on October 18, 2018 to NIL. The securities were issued pursuant to the exemption provided by ~~Section 4(a)(2) of~~Regulation S promulgated under the Securities Act of 1933, as ~~amended, and Regulation S promulgated thereunder.~~amended. The foregoing description of the Stockholder Representation Letters are qualified in its entirety by reference to such agreements which are filed as Exhibit 10.3 to this Quarterly Report and are incorporated herein by reference.

On December 3, 2018, we approved the issuance of up to an aggregate of Ten Million Eight Hundred Thirty Eight Thousand One Hundred Forty One (10,838,141) shares of our common stock, par value $0.0001, representing approximately 7.1% of our issued and outstanding common stock, at a per share price of Two Dollars (US $2.00), to about 690 sales associates for prior sales and marketing services provided to us and our subsidiaries and affiliates. As a condition of receipt of such securities, each recipient was required to execute one of two standard forms of Stockholder Representation Letters, which contained, among other things, restrictions prohibiting the transfer of such securities for a minimum period of 18 or 24 months up to a maximum period of 72 months after the execution of such letter. For ease of administration, the recipients appointed Venvici Partners Limited (“VVP”) as nominee to hold, manage, administer and effectuate the distribution of such securities upon the expiration of the applicable restricted periods. The shares were issued on January 4, 2019 to VVP. The securities were issued pursuant to the exemption provided ~~by Section 4(a)(2) of~~Regulation S promulgated under the Securities Act of 1933, as ~~amended, and Regulation S promulgated thereunder.~~amended. The foregoing description of the Stockholder Representation Letters and the appointment of VVP as trustee are qualified in its entirety by reference to such agreements which are filed as Exhibits 10.4 and 10.5 to this Quarterly Report and are incorporated herein by reference.

On March 11, 2019, our Board of Directors, approved the issuance of up to an aggregate of Fifteen Million (15,000,000) shares of our common stock, par value $0.0001, representing approximately 8.4% of our issued and outstanding common stock (collectively, the “Shares”), at a per share price of Two Dollars (US $2.00), to about 700 sales associates for prior sales and marketing services provided to us and our subsidiaries and affiliates. As a condition of receipt of such securities, each recipient was required to execute one of two standard forms of Stockholder Representation Letters, which contained, among other things, restrictions prohibiting the transfer of such securities for a minimum period of 18 months up to a maximum period of 66 months after the execution of such letter. For ease of administration, the recipients appointed Venvici Partners Limited (“VVP”) as nominee to hold, manage, administer and effectuate the distribution of the Shares upon the expiration of the applicable restricted periods. For so long as VVP is the stockholder of record of the Shares, VVP shall serve as the attorney in fact to vote such Shares at any annual, special or other meeting of the stockholders of the Company, and at any adjournment or adjournments thereof, or pursuant to any consent in lieu of a meeting or otherwise, with respect to any matter that may be submitted for a vote of stockholders of the Company. The securities will be issued pursuant to the exemption provided by ~~Section 4(a)(2) of~~Regulation S promulgated under the Securities Act of 1933, as ~~amended, and Regulation S promulgated thereunder.~~amended. The foregoing description of the Stockholder Representation Letters and the appointment of VVP as trustee are qualified in its entirety by reference to such agreements which are filed as Exhibits 10.6 and 10.7 to this Quarterly Report and are incorporated herein by reference.
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V-More Merchant Acquisition Agreements

On March 19, 2019, we entered into a V-More Merchant Acquisition Agreement with each of the Consultants pursuant to which each Consultant agreed to provide certain services related to the identification, due diligence, acquisition and retention of potential merchants in certain designated territories for inclusion in our V-More platform. As consideration for these services, each Consultant received up to an aggregate of Fourteen Million Three Hundred Twenty Thousand (14,320,000) shares of our common stock, for an aggregate of up to Forty-Two Million Nine Hundred Sixty Thousand (42,960,000) shares of our common stock, subject to the achievement of certain performance milestones and certain clawback rights. We registered Twenty-One Million Four Hundred Eighty Thousand (21,480,000) shares of the amount of shares issuable under the V-More Merchant Acquisition Agreement on a Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019. The foregoing description of the V-More Merchant Acquisition Agreements is qualified in its entirety by reference to the V-More Merchant Acquisition Agreements dated March 19, 2019, which are filed as Exhibits 10.8, 10.9 and 10.10 to this Quarterly Report and incorporated herein by reference.

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Consulting Agreement

During the period from March 19, 2019 till ~~September 30,~~December 31, 2019, one of V-More’s merchants and vendors, Fame Reserve Limited, a subcontractor of Ms. Sukullayanee Suwunnavid (the “Digital Consultant”), which distributes digital vouchers, ran a promotion through V-More platform to promote and sell their digital vouchers (the “Promotion”). As a consideration for purchasing these vouchers for the promotion, the Board approved the issuance of up to an aggregate of Ten Million (10,000,000) shares of our common stock, par value $0.0001, of our issued and outstanding common stock, at a per share price of Two Dollars (US$2.00).

In connection to the Promotion, we entered into a Consulting Agreement with pursuant to which the Digital Consultant agreed to supply certain digital offerings and services to our customers, including without limitation, order fulfilment services with respect to orders from our customers received through the Digital Consultant’s online platform and its related digital offerings. We issued Ten Million (10,000,000) shares of the Corporation’s Common Stock, par value $0.0001 (the “Shares”), at a per share price of US$2.00, as payment in full for the Services and the satisfaction of all of our obligations to the Digital Consultant with respect to such services. These securities were registered on a Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019. The foregoing description of the Consulting Agreement is qualified in its entirety by reference to the V-Consulting Agreement dated March 19, 2019, which is filed as Exhibit 10.11 to this Quarterly Report and incorporated herein by reference.

~~Reorganization of UB45, Ventrepreneur (SG), AIM System and Vmore Merchants~~
On September 17, 2018, NVGI acquired from Eldee Tang, our Chief Executive Officer and Director, 100% of UB45 Private Limited, a private limited company organized under the laws of Singapore (“UB45”), that has no existing business, assets or liabilities.
In January and May 2019, we completed a series of reorganizations pursuant to which we reorganized UB45, Ventrepreneur (SG) Private Limited, a private limited company formed under the laws of Singapore (“VESG”), AIM System Private Limited (“AIM”) and VMore Merchants Private Limited (“VM”) into NVGI. Prior to the reorganization:
· ~~UB45 was a company with the operation office building as its main primary asset that was wholly owned by NVGI;~~
· ~~VESG was a subsidiary of Venvici Private Limited (“VVPL”) with nominal assets and liabilities;~~
· ~~AIM was formed for the purpose of providing Customer Relation Management system for V-More customers and had nominal assets and liabilities; and~~
· ~~VM was formed for providing merchants onboarding services into our V-More ecosystem and had nominal assets and liabilities.~~
~~Prior to the reorganization, AIM and VM were owned by our non-affiliate shareholders, Chia Poh Wah Jason and Desmond Tan Ching Teck respectively.~~
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~~In August and September 2019, to achieve proximity to New Zealand and Australia markets and to expand our IoT business, we further reorganized our company as follows:~~
· ~~Formed VMore Holding Limited New Zealand (“VMNZ”) to serve as a holding company for our New Zealand activities; and~~
· ~~Acquired 51% of ToroV System Private Limited (Singapore) ("TVPL"), with the remaining balance held by Eldee Tang, our Chief Executive Officer and director.~~
Our current corporate structure is as below:

~~Entry into a Material Definitive Agreement~~
On April 1, 2019, we entered into a binding Memorandum of Understanding (the “Elusyf MOU”) with Eldee Wai Chong Tang, our Chief Executive Officer and Director, whereby we agreed to reorganize Elusyf Global Private Limited, a Singapore corporation (“EGPL”), into the Company in accordance with the terms of the Elusyf MOU. Upon the consummation of such reorganization, EGPL will become a 51% owned subsidiary of the Company. EGPL is engaged in the business of marketing and distribution of health and beauty products, such as Elusyf Mitos Activa and Cell Activa Phytomask, among other offerings, through its wide network of channels. Mr. Tang owns Fifty-Nine Thousand Nine Hundred Eighty (59,980) ordinary shares of EGPL, representing 51% of the issued and outstanding securities of EGPL. We are still in the process of due diligence of EG. The foregoing description of the Elusyf MOU is qualified in its entirety by reference to such Elusyf MOU which is filed as Exhibit 10.12 to this Quarterly Report and are incorporated herein by reference.

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On June 17, 2019, we entered into a binding Memorandum of Understanding (the “Kootoro MOU”) with Kootoro Vietnam Inc., a limited liability company organized under the laws of Vietnam (“KVI”), whereby the parties agreed to form a strategic partnership to expand V-More’s footprint and ecosystem into Vietnam. Due to a delay in achieving the mutually agreeable milestones, we terminated the Partnership in good faith on November 6, 2019, and determined to pursue our own expansion into our IoT business.
~~Departure of Officer and Change in Office Bearers~~
On May 10, 2019, Noble Vici Group, Inc. (the “Company”) accepted the resignation of Jon Yee Chuan Lim from his positions as Chief Operating Officer and Secretary of the Company. Mr. Lim’s resignation became effective May 31, 2019. Mr. Lim’s departure was for personal reasons and not due to any disagreement with the Company on any matter related to the Company’s operations, policies or practices. In connection with Mr. Lim’s resignation from his positions, the Board appointed Sin Chi Yip, our Chief Financial Officer, to serve as the interim Secretary and interim Chief Operating Officer.
On June 21, 2019, Noble Vici Group, Inc. (the “Company”) approved the establishment of the office of the Chief Corporate Officer with oversight responsibilities in the areas of legal and compliance, human resources and administration, and system integration, as a replacement for the office of Chief Operating Officer. The Company created this office in connection with its efforts to re-align priorities and increase effectiveness of the ongoing operations of the Company in light of the vacancy resulting from the resignation of Jon Yee Chuan Lim from his positions as Chief Operating Officer and Secretary of the Company. In connection with the such efforts, the Board appointed Sin Chi Yip to serve as the Chief Corporate Officer and Secretary effective immediately. Mr. Yip relinquished his role as Chief Financial Officer and Interim Chief Operating Officer, Eldee Wai Chong Tang, our Chief Executive Officer, is appointed to serve as interim Chief Financial Officer, effective immediately.

Our Operations and Future Plans

Ecommerce Platform
We are focused on providing users with innovative tools to live and interact in the modern mobile world through our ecosystem of IoT, Big Data, Blockchain and E-commerce products and services. We integrate blockchain technology with our E-commerce platform to connect consumers and merchantsin a dynamic global marketplace via blockchain transactions. We onboard users, consumers and referrers through our Affiliate Incentivized Marketing to Advertising Dollar Sharing (formerly known as Affiliate Incentivized Marketing (AIM)) model while merchants are onboarded via our Merchant Incentivized Marketing (MIM) model. Some products and services offered in our ecosystem include procurement of discounted goods and services,, referral reward system, mobile games and digital marketing, financial markets apps and a “Business Centre” within the same app. Our E-commerce platform not only offers users the ability to make online purchases, but also the convenience of an O2O (Online to Offline) platform whereby consumers can transact at a discount online while goods and services are distributed at a physical location. This drives traffic to the already weakened retail industry. The Business Centre within our ecosystem is offered through a mobile app and allows users to create their own referral platform within our ecosystem.

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Advertising Dollar Sharing (ADS)
We have rebranded our Affiliate Incentivized Marketing to Advertising Dollar Sharing. Similar to the AIM model, the ADS business model also involves driving online and physical traffic and increasing sales and marketing of targeted products and services. Its enhanced function includes distribution of advertising dollars via ADS system to agencies, affiliate marketers, advertiser, users and referrals.
Sale and Distribution of IoT Smart Devices / VMore System Private Limited
In addition to the E-commerce platform, we intend to focus on the sales and distribution of IoT smart devices and appliances. ~~We have started~~In September, 2019, we began to ~~include~~sell our first IoT ~~appliances such as~~appliance, our smart coffee dispensing machines (the V-More Express (“VX”)). We hope to begin distributing the machines on or about the second calendar quarter of 2020 and expect them to be progressively placed into operation in Singapore on or around the third quarter of 2020. We expect to derive income from sales of our VX IoT hardware, the core consumables in VX and the advertising services we provide to our customers in connection with the VX.
Features of the VX; Revenue Sources:
Machine Capacity: The VX offers 9 types of beverage, holds 60 litres of distilled water tank and is able to produce 400 cups of beverages. VX currently offers barista-grade coffee in 9 different varieties in both hot and ice options. VX can be modified to allow for other offerings to be sold. We expect to adopt regional pricing for core products sales, aligning to each specific market’s demand and supply.
AdTech: In addition to sales of core products, we expect to rely on advertisements placed through the VX to drive revenue. We intend to seek advertisers that are proximate to each specific VX to display their advertisements through our smart machine. We believe that the use of local advertisements (Proximate Location Ads, or PLA) will drive relevant traffic to nearby physical merchants as well as online merchants. Advertisements can be static or dynamic and may be interactive, allowing user interaction. We expect to provide services to advertisers to assist them in creating and placing effective ads in the VX.
Smart Technology: The VX features a 42 inch touch screen with Smart Digital Panel Advertising Technology (“SDPAT”) that allows users to interact with advertisements via its interactive touch screen. Through the VX, we hope to capture users’ spending behaviour, advertisement interactions and other quantitative data, while developing our Big Data analytics. Data from our machines can be integrated with our ecommerce platform to facilitate the offering of discounts, rewards or other products and services across our e-commerce platform. We believe that additional data will allow us to: (i) deliver and improve our offerings and services of our online VMore E-commerce platform; (ii) improve synergy with offline merchants; (iii) improve the efficacy of our advertising services; and (iv) improve sales of products offered by the VX.
VX Operations
Our VX business operations are segregated into the following core functions to address the needs of our advertisers, VX IoT hardware purchasers and consumers.
Sales and Marketing Team. Our team will focus on the sale of the VX IoT hardware. Its targeted industries are primarily from real estate and property owners such as commercial offices, retails and buildings, where the VX will be installed. In addition to the sale of VX, the team will also create brand awareness of the VX and its core offerings in the VX.
Advertiser Onboarding Team. Once an advertiser engages us online to have its advertisement placed in VX, a member of our advertiser onboarding team will initiate the first of several communications with the merchant to introduce the advertiser to the technology involved in our PLA ecosystem. Before the advertisement goes live on the VX, the team will work with the advertiser to build and create the advertisement. We will provide tools such as an app to ensure the advertisement traffic monitoring and management are aligned. All advertisements will be proximate locality based, ensuring relevance for targeted traffic to be driven.
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Operation and Maintenance Team(O&M). Once the VX are deployed, O&M team will monitor the performance of each VX deployed for its ingredients supply, hardware status and data collection efficiency. Maintenance of the hardware for performance to prevent downtime and refilling the ingredients into the VX will be undertaken by the O&M team.
Customer/User Service Representatives. Our customer service representatives will be reachable via the app or email 24 hours a day, seven days a week. The customer service team will also work with our technology team to improve the experience of VX owners, consumers and advertisers on the mobile application based on their feedback.
Technology. We employ technology to improve the experience we offer to VX owners, users and advertisers, increase the rate at which our users use our V-More Pro platform and enhance the efficiency of our business operations. A component of our strategy is to continue developing and refining our technology. With the future use of blockchain technology for recording and collecting data, we believe the security of transactional records will be increased, protecting the accuracy of data held by VX owners, advertisers and users. We believe that basing transactional data on a private blockchain network will facilitate a smoother and faster transaction completion.
We expect to use an algorithm to analyze data collected through our VX ecosystem. As the volume of transactions grow organically through increased deployment of VXs, we expect to increase the amount of data that we can collect and analyze. We believe that such data will allow us to continue to improve the experience of our VX owners, advertisers and consumers which, in turn, will help us improve the way the ecosystem flows.
Cybersecurity.    We have integrated our technology with encryption algorithm “SHA3-256” & RSA Public/Private-Key, which is designed to withstand timing attacks. It also accepts any 32-byte string as a valid public key and does not require validation. We believe that the security of transaction records within our current system is adequate.
Advertising Dollar Sharing (ADS).    We believe our ADS model will allow users and advertisers to benefit from reduced costs to consumers and higher traffic for advertisers. We expect users to benefit from discounts and advertising dollar rebates offered through our PLA ecosystem from online and offline merchants, referrals, and internal marketing efforts, with advertisers benefitting from increased retail sales volume offline or online.
Core Product/User Scale.   We hope to include other products from mass market merchants, such as food and other beverages, as part of our ~~new~~product and service offerings. We ~~hope~~believe that outreach to ~~integrate~~ the ~~infrastructure~~mass market will be more effective to drive traffic for the advertisers/merchants where simple to complex transactions can be achieved through adoption of an incentivized model.
Brand. A substantial portion of our VX owners, advertisers and users are acquired through agencies, word-of-mouth & social network/platforms. We believe that relying on the referral process, in turn, will improve the quality of our user base, advertisers and VX owners as well as brand awareness. We expect that higher confidence in our brand will facilitate acquiring more users, advertisers and VX owners for our ecosystem.
We operate our IoT ~~into~~Smart Device business through VMore System Private Limited (“VMSPL”), our ~~E-commerce platform~~wholly owned subsidiary. VMSPL was incorporated in Singapore on July 22, 2019, and operates with our subsidiary AIM System Private Limited (“ASPL”), a Singapore private limited corporation incorporated on April 1, 2019, as described below:
· VMSPL – engages in sales and marketing of VX and barista grade coffee to owners and consumers, operates and maintains the VX including support, both technical and non-technical;
· ASPL – engages in VX software technology integration; Proximate Location Ads (“PLA”) activities such as advertisement sales, build, create and deploy its proprietary software technology (“PropST”); distribute advertising dollars via an Advertising Dollar Sharing (“ADS”) system to agencies, affiliate marketers, advertisers, users and referrals; provide technical and non-technical support in relation to PLA; and engages in brand management, marketing, promotions and media engagement activities.
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VX vendor
We expect to rely on Barista Uno Private Limited (“BUPL”) to provide VMSPL with VX IoT hardware and coffee sourcing, distribution, and logistical upstream and downstream fulfilment services. Eldee Tang, our Chief Executive Officer and Director owns 31% of BUPL.
Trends, Markets and Regions
Advertisement Spending
*It is estimated that advertising spending worldwide will surpass 560 billion U.S. dollars in 2019, representing a growth of roughly four percent compared with the previous year. North America is expected to remain the largest regional ad market, closely followed by Asia Pacific. Western Europe ranks third, with ad spends amounting to approximately half of these of North America. (*Source: https://www.statista.com/statistics/ 236943/global-advertising-spending/) **Meanwhile, digital advertising spending worldwide – which includes both desktop and laptop computers as well as mobile devices – stood at an estimate at 194.6 billion U.S. dollars in 2016. This figure is forecast to constantly increase in the coming years, reaching a total of 335 billion U.S. dollars by 2020. (**Source: https://www.statista.com/statistics/237974/online-advertising-spending-worldwide/)
In addition to the advertising spending study, we examined various consumer models such as cashback models for direct compensation to affiliate marketing (e.g., https://www.shopback.sg), discounted coupons sales model (e.g. https://www.groupon.com) and incentivized reward model (e.g. https://www.dollarshaveclub.com).
We believe that advertising spending, including digital advertising spending will continue to increase in the near future. We intend to innovate the way advertisement is used in the marketplace through digital advertisements and effective channeling relevant traffic.
Market and Region: Bank and Unbanked in Southeast Asia
*With a population of 570 million and a booming GDP expected to reach $4.7 trillion by 2025, the six largest countries in Southeast Asia represent one of the world’s largest and fastest-growing regions. Within the region, we believe that the financial services industry holds tremendous if fundamental underlying challenges are addressed. For example, cash is still the primary means of transaction. More than 70% of the adult population is either “underbanked” or “unbanked,” with limited access to financial services. (*Source: https://www.bain.com/insights/fufilling-its-promise/)
*Currently, only 50% of adults in ASEAN have an account at a financial institution. ASEAN is discussing a specific financial inclusion target for 2020. There is a consensus to set the target at around 70% for 2020. Rates of financial “exclusion” are higher among the poor, those living in rural areas, and those who are less-educated. Interestingly, neither gender nor age are relevant factors that explain financial exclusion in ASEAN countries. In ASEAN countries, only 29% of workers reported receiving their monthly salaries through an account from a financial institution, while the remaining 71% is paid in cash by their employers. (Source: http://blogs.worldbank.org/eastasiapacific/how-to-scale-up-financial-inclusion-in-asean-countries).
We believe the unbanked population in the ASEAN region represents an untapped opportunity, as individuals without accounts at financial institutions are limited in their ability to shop or engage in other financial transactions online. We intend to focus on the ASEAN region, especially the unbanked market which is generally not the main focus of many large corporations. We believe that our model of converting VX spending into reward incentives and rebates that are redeemable on our platform allows the unbanked market to access our online platform for new and additional spending experiences without the requirement of having an account at a financial institution.
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INTELLECTUAL PROPERTY AND PATENTS
We expect to rely on patents, trade secrets, copyrights, know-how, trademarks, license agreements and contractual provisions to establish our intellectual property rights and protect our “VMore Express” brand and services. These legal means, however, afford only limited protection and may not adequately protect our rights. Litigation may be necessary in the future to enforce our intellectual property rights, protect our trade secrets or determine the validity and scope of the proprietary rights of others. Litigation could result in substantial costs and diversion of resources and management attention. Any unauthorized disclosure or use of our intellectual property could make it more expensive to do business and harm our operating results.
The laws of Singapore and our target countries may not protect our brand and services and intellectual property to the same extent as U.S. laws, if at all. We may be unable to fully protect our intellectual property rights in these countries. Further, companies in the internet, social media technology and other industries may own large numbers of patents, copyrights and trademarks and may frequently request license agreements, threaten litigation or file suit against us based on allegations of infringement or other violations of intellectual property rights.
We intend to seek the widest possible protection for significant product and process developments in our major markets through a combination of trade secrets, trademarks, copyrights and patents, if applicable. We anticipate that the form of protection will vary depending upon the level of protection afforded by the particular jurisdiction. Initially, we expect that our revenue will be derived principally from our operations in Singapore and other parts of Southeast Asia where intellectual property protection may be more limited and difficult to enforce. In such instances, we may seek protection of our intellectual property through measures taken to increase the confidentiality of our findings.
We intend to register trademarks as a means of protecting the brand names of VMSPL, its products, and systems. We intend protect our trademarks against infringement and also seek to register design protection where appropriate.
We rely on trade secrets and unpatentable know-how that we seek to protect, in part, by confidentiality agreements. We expect that, where applicable, we will require our employees to execute confidentiality agreements upon the commencement of employment with us. We expect these agreements to provide that all confidential information developed or made known to the individual during the course of the individual's relationship with us is to be kept confidential and not disclosed to third parties except in specific limited circumstances. The agreements will also provide that all inventions conceived by the individual while rendering services to us shall be assigned to us as the exclusive property of our company. There can be no assurance, however, that all persons who we desire to sign such agreements will sign, or if they do, that these agreements will not be breached, that we would have adequate remedies for any breach, or that our trade secrets or unpatentable know-how will not otherwise become known or be independently developed by competitors.
COMPETITION
We operate in a highly competitive and fragmented industry that is sensitive to price and service. We compete with leading beverage companies such as Luckin Coffee (China), Toastbox (Singapore) which may offer substantially the same or similar product offerings as us. We also compete with businesses that focus on particular merchant categories or markets as well as traditional cash payments and other popular online shopping websites and apps, and other traditional media companies that provide discounts on products and services. We believe the principal competitive factors in our market include the following:
· breadth of consumer base and advertisers/merchants featured;
· local presence and understanding of local business trends;
· ability to deliver a high volume of relevant deals to consumers;
· ability to produce high purchase rates for deals among users;
· ability to generate positive return on investment for advertisers/merchants; and
· strength and recognition of our brand.
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Although we believe we compete favorably on the factors described above, we anticipate that larger, more established companies may directly compete with us as we continue to demonstrate the viability of a local online-to-offline & offline-to-online solution provider. Many of our current and potential competitors have longer operating histories, significantly greater financial, technical, marketing and other resources, larger product and services offerings, larger customer base and greater brand recognition. These factors may allow our competitors to benefit from their existing customer or subscriber base with lower acquisition costs or to respond more quickly than we can to new or emerging technologies and changes in customer requirements. These competitors may engage in more extensive research and development efforts, undertake more far-reaching marketing campaigns and adopt more aggressive pricing policies, which may allow them to build a larger subscriber base or to monetize that subscriber base more effectively than us. Our competitors may develop products or services that are similar to our products and services or that achieve greater market acceptance than our products and services. In addition, although we do not believe that merchant payment terms are a principal competitive factor in our market, they may become such a factor and we may be unable to compete fairly on such terms.

We are pursuing a plan of expansion and hope to achieve revenue growth through mass adoption by users and merchants of our platform/ecosystem. We seek to increase our user and merchant base through user incentive programs and brand awareness marketing programs, among other things. We expect to focus on users and merchants located in China and the Asia Pacific region in the foreseeable future. Similarly, we intend to seek corporate growth by listing our securities on a national exchange such as the Nasdaq Capital Markets in the future.

Our principal office is located at 1 Raffles Place, #33-02, One Raffles Place Tower One, Singapore 048616. This service office is subjected to one year service agreement pursuant to which we are permitted to use the service office space for a period of one year at a monthly rate of S$24,000, or approximately US$17,778. The service office agreement expired on May 31, 2019. We are in discussions with the service provider regarding the extension on the ~~use~~reduced size of the use by half for the service ~~office.~~office with effect from February 1, 2020 for a period of thirteen months. We are in the process of memorializing the agreement in due course. The foregoing description of the service office usage is qualified in its entirety by reference to the Service Agreement dated May 2, 2018, which is filed as Exhibit 10.14 to this Quarterly Report and incorporated herein by reference.
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On October 1, 2018, we purchased a building subject to a sixty year leasehold located at 45 Ubi Crescent, Singapore 408590 to serve as our primary operational center. The four storey building is approximately 13,000 square feet with a remaining lease term of thirty-eight years. The purchase price of S$4,480,000 (approximately US$3,295,819) was financed by a loan with Ethoz Capital Limited in the principal amount of S$3,136,000 (approximately US$2,307,073) at an annual rate of 3.75%, payable over 120 months commencing October 1, 2018. The loan is personally guaranteed by our Chief Executive Officer and Director, Eldee Tang. The foregoing description of the loan is qualified in its entirety by reference to the Secured Term Loan Facility dated September 14, 2018, which is filed as Exhibit 10.15 to this Quarterly Report and incorporated herein by reference.

On January 19, 2019, we opened a branch office in Taiwan to service merchants and customers of our online platform, V-more, located within the Greater China Region. Our Taiwan branch office also oversees the operations of a V-More branded office located in China and is operated by one of our sales affiliates. The Taiwan branch office is currently operated through our subsidiary VESG. The Taiwan branch office is a party to a lease agreement, a summary of which is as follows:

Name of Branch Ventrepreneur (SG) Private Limited, Taiwan Branch
Office Address 282 Zheng Bei Road 2, Level 5 Unit 3, Xitun District, Taichung, Taiwan
Tenancy Period December 1, 2018 to November 30, 2020
Premises Size Approximately 3,000 square feet
Yearly Lease Amount US$37,473 for Taiwan branch

In addition to our Taiwan office and China affiliate office, certain of our sales affiliates also operate additional V-More branded affiliate offices in the following regions: Indonesia, Thailand and Malaysia. We hope to memorialize the terms of operations of these affiliate offices in the near future.

Intellectual Property

We continue to own the rights, title and interests in Patent for a receptacle catheter with integral anchoring means, which Patent is associated with our former business. The Patent was issued on September 1, 2004 and will expire on September 6, 2022. We do not expect to exploit these Patents in the near future.
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Results of Operations
The COVID-19 pandemic and the effects arising from efforts to contain the outbreak have materially and adversely affected our business and financial performance for the three and six months ended September 30, 2020. Our unaudited condensed consolidated financial statements for the three and six months ended September 30, 2020, includes a note about our ability to continue as a going concern due to consecutive quarterly losses from operations from the last year ended March 31, 2020, and continuing into the first fiscal quarter ended June 30, 2020  , as a result of COVID-19. If COVID-19 continues to adversely affect our business and financial performance, we may not be able to generate sufficient cash flow to meet our operating expenses.
In response to the outbreak and related government-imposed restrictions impacting goods and services movement and fulfilment, we have taken a series of measures accordingly, including telecommute working for some employees, reducing pay and benefits for remaining employees, and cutting back capital spending. The above measures have affected our operating capacity and work efficiency, and negatively impacted our sales and marketing activities as well as its business performance. The extent to which COVID- 19 affects our business performance will depend on the future development of the epidemic, including new actions taken by the government to contain the outbreak, which is highly uncertain and unpredictable. In addition, if the economy of Southeast Asia as a whole is negatively impacted by the outbreak, our operating performance will also be adversely affected.
In light of the uncertainty as to when we can resume full operations and the uncertain customer demand environment, we are seeking financing from equity investors and financial institutions for current and projected future working capital and growth expansion purposes. In addition, we have also re-aligned our targeted sectors and increased product bundling in our business plan. Based on our revised business plan and updated forecast, we believe the Company will have sufficient operating cash flows to operate as a going concern over the next 12 months.

Comparison of the three months ended September 30, ~~2019~~2020 and September 30, ~~2018~~2019

The following table sets forth certain operational data for the three months ended September 30, ~~2019,~~2020, as compared to the three months ended September 30, ~~2018:~~2019:

Three months ended September 30,
2019 2018
Net revenue $ 2,738,254 $ 364,352
Cost of revenue (1,616,242 ) (321,341 )
Gross profit 1,122,012 43,011
Operating expenses:
Sales and marketing expense (39,730 ) (53,131 )
General and operating expenses (1,202,526 ) (562,546 )
Total operating expenses (1,242,256 ) (615,677 )
Loss from operations (120,244 ) (572,666 )
Loss before income taxes (129,885 ) (561,697 )
NET LOSS $ (136,514 ) $ (561,697 )
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Three months ended September 30,
2020 2019
Net Revenue $ 119,837 $ 2,738,254
Cost of revenue (26,109 ) (1,616,242 )
Gross profit 93,728 1,122,012
Operating expenses:
Sales and marketing expense (155,780 ) (39,730 )
General and operating expenses (833,430 ) (1,202,526 )
Total operating expenses (989,210 ) (1,242,256 )
Loss from operations (895,482 ) (120,244 )
Loss before income taxes (819,632 ) (129,885 )
NET LOSS $ (855,577 ) $ (136,514 )

Net Revenue. We generated net revenue of ~~$2,738,254~~$119,837 and ~~$364,352~~$2,738,254 for the three months ended September 30, 2020 and 2019, respectively. The decrease in net revenue for the three months ended September 30, 2020 was due to COVID-19 related government imposed restrictions impacting goods and ~~2018, respectively.~~services movement and fulfilment. For the three months ended September 30, 2020, 90% of net revenue was contributed by Singapore. None of the other countries contribute more than 10% each. For the three months ended September 30, 2019, 57% of our net revenue was derived from income from V-More, our ecommerce platform while 38% of our net revenue was contributed by our IoT business, mainly from smart coffee dispensing machines sales. The balance of net revenues consisted of mainly of administrative charges income, service income. For the three months ended September 30, 2018, 68% of our net revenue were attributable to sales of our Cerfrion and Cordyceps. The balance of net revenues consisted of mainly of administrative charges income and service income.

On a going forward basis, we ~~expect~~hope to generate revenue from our IoT products such as our smart coffee dispensing machines, e-commerce platform as well as any products that we distribute for our merchants, as more merchants are progressively on ~~boarded progressively, among others.~~boarded.
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For the three months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the following geographic regions accounted for 10% or more of our total net revenues:

Country September 30, 2019 September 30, 2018 September 30, 2020 September 30, 2019
Singapore 70% 30% 90% 70%
Malaysia 15% - 4% 15%
Philippines 2% - 1% 2%
Thailand 2% - 2% 2%
Indonesia 3% - 2% 3%
Greater China Region 4% 69% –    4%
United States –    –
Rest of the World 4% 1% 1% 4%
Total 100% 100% 100% 100%

For the three months ended September 30, ~~2019~~2020 and ~~2018,~~2019, no customers accounted for 10% or more of our total net revenues.

~~Key Performance Indicators: Gross Cash Receipts, Supplier Product & Logistics Allowance and Commission Payout~~
In addition to Net Revenue, we focus on several non-GAAP key performance indicators to assist us in assessing the strength of product sales and our supply chain across different geographical regions: Gross Cash Receipts, Supplier Product & Logistics Allowance, and Commission Payout.
“Gross Cash Receipts” means proceeds actually received from products sold. This is a non-GAAP indicator that does not correlate to gross revenue and may not be comparable to similarly-titled measures used by other companies.
“Undelivered items” refers to products sold for which we have received payment but have not yet been delivered to the purchaser. This is a non-GAAP indicator on which we rely to assess the strength and performance of our supply chain, product delivery obligations, product trends and the like.
“Supplier Product & Logistics Allowances” means the fees and costs that we pay to the applicable product supplier to manufacture, package and ship our products to our end customer. This is a non-GAAP indicator on which we rely to determine the cost of manufacturing, packaging and delivering our products.
~~“Commission Payout” refers to the commission payments that we make to resellers of our products.~~
The criteria we use to determine how and when we recognize the foregoing key performance indicators are not identical to our revenue recognition policies under U.S. GAAP. By way of example, unlike net sales, which are generally recognized when the product is delivered and both the title and risk and rewards pass to the buyer, as discussed in greater detail in Note 3,~~Summary of Significant Accounting Policies~~Major Vendors.~~, to the Consolidated Financial Statements, we recognize Gross Cash Receipts when we receive funds from the buyer, which is generally prior to the product being delivered to the buyer.~~
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~~The following describes the relationship between our key performance indicators and US GAAP reporting:~~
Three Months Ended September 30,
2019 2018
Gross Cash Receipts $ 3,112,153 $ 5,197,691
Less: Undelivered items $ (453,297 ) $ (1,230,659 )
Less: Supplier’s product & logistics allowances $ (32,567 ) $ (1,564,190 )
Less: Commission payout $ (41,705 ) $ (2,149,420 )
Net Cash Receipts $ 2,584,584 $ 253,422

Other Sales $ 153,670 $ 110,930

Net Revenue $ 2,738,254 $ 364,352
~~For the three months ended September 30, 2019, our Gross Cash Receipts net of sales returns was $~~~~3,112,153~~, representing a decrease from $5,197,691 for the same period ended 2018. This was attributed to change in product mix from sale of Cordyceps in China in the same period of 2018 to increased sales from our IoT business which currently is mainly comprised of smart coffee dispensing machines sales in new markets in Malaysia, Philippines, Thailand and Indonesia. For the three months ended September 30, 2019, VMore and Digital offering sales contributed $1,862,643 or approximately 60% of our Gross Cash Receipts while sales of smart coffee machines contributed the balance of the Gross Cash Receipts. Moving forward, in addition to our digital offerings and e-commerce business, we intend to increase our focus on the distribution IoT related products such as smart coffee dispensing machines.
Our undelivered items for the three months ended September 30, 2019, was $453,297 and consisted primarily of digital products paid for but not yet delivered. Our undelivered items for the three months ended September 30, 2018, was $1,230,659 and consisted primarily of Cordyceps and Cerfrion. We expect undelivered items to be fulfilled within three months generally.
Our Supplier Product & Logistics Allowances for the three months ended September 30, 2019 and 2018 was $32,567 and $1,564,190 respectively. The decrease in Supplier Product & Logistics Allowance was attributable to the major shift from the physical sale of Cordyceps in China within the same period in 2018 to the online sale of merchant’s offerings from our V-More platform.
Commission Payout for the three months ended September 30, 2019 was $41,705 as compared to $2,149,420 for the three months ended September 30, 2018. The decrease in Commission Payout was due to a change in product mix.

For the three months ended September 30, ~~2019, other sales of $153,670 consisted mainly of courses~~2020 and ~~V-More administrative fees income as compared to $110,930 for the same period of 2018 where other sales consisted of primarily of service fee income and subscription proceeds.~~
~~Major Vendors.~~
Three Months Ended September 30, 2019
Vendors Purchase Accounts Payable
Barista Uno Private Limited $ 1,035,549 $ 1,900,529
~~For the three months ended September 30,~~ 2019, this is one single vendor representing more than 10% of the Company’s purchase. This vendor (Barista Uno Private Limited) accounted for 64% of the Company’s purchase amounting to $1,035,549 with $1,900,529 of accounts payable.
~~Eldee Tang, our Chief Executive Officer and Director, owns 49% of Barista Uno Private Limited.~~
~~For the three months ended September 30, 2018,~~ no vendors account for more than 10% of the Company’s purchase.

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Gross Profit. We achieved a gross profit of $93,728 and $1,122,012 for the three months ended September 30, 2020, and ~~$43,011~~2019, respectively. The attributing factor for the decreased in gross profit was due to lower sales during the Covid-19 pandemic climate. We expect to continue focus on the new IoT product line.
Operating Expenses.
Three months ended September 30,
2020 2019
Operating expenses:
Sales and marketing expense $ 155,780 $ 39,730
General and operating expenses 833,430 1,202,526
Total operating expenses $ 989,210 $ 1,242,256
During the three months ended September 30, 2020, and 2019, we incurred operating expenses of $989,210 and $1,242,256, respectively. Our operating expenses for the three months ended September 30, 2020 includes sales and marketing expense of $155,780 and general and operating expenses of $833,430. Our operating expenses for the three months ended September 30, 2019 includes sales and ~~2018, respectively. The increase in gross profit is primarily attributable to the major shift in product~~marketing expense of $39,730 and offering mix. For the three months ended September 30, 2019, 57% of our gross profit was derived from income from V-More, our ecommerce platform, while 38% of our gross profit was contributed by IoT business, mainly from smart coffee dispensing machines sales. For the three months ended September 30, 2018, 68% of our gross profit was derived from sales of Cordycepsgeneral and ~~Cerfrion while the balance of gross profit consisted of mainly of administrative charges income and service income.~~
~~Operating Expenses~~.
Three months ended September 30,
2019 2018
Operating expenses:
Sales and marketing expense $ (39,730 ) $ (53,131 )
General and operating expenses $ (1,202,526 ) $ (562,546 )
Total operating expenses $ (1,242,256 ) $ (615,677 )
Less: Stock based compensation $ – $ –
Total operating expenses (Excluding stock based compensation) $ (1,242,256 ) $ (615,677 )
~~During the three months ended September 30, 2019, and 2018, we incurred~~ operating expenses of $~~1,242,256~~~~and $615,677, respectively.~~$1,202,526. The ~~increase~~overall decrease in operating expenses ~~is primarily attributable~~was due to ~~an increase in our manpower~~the streamlining of processes to improve efficiencies and ~~other resources to support our change in business focus and re-alignment of our strategy.~~cost cutting measures taken amid the Covid-19 pandemic.

Net ~~Income (Loss)~~Loss.
Three months ended September 30,
2019 2018
NET LOSS (INCLUDING STOCK BASED COMPENSATION) $ (136,514 ) $ (561,697 )
Less: Stock Based Compensation $ – $ –
NET LOSS (EXCLUDING STOCK BASED COMPENSATION)
$ (136,514 ) $ (561,697 )
We recorded a net loss of $~~136,514~~$855,577 and ~~$561,697~~$136,514 for the three months ended September 30, ~~2019,~~2020, and ~~2018,~~2019, respectively. The ~~decrease~~increase in net loss ~~was attributed~~is primarily attributable to ~~change in product mix from sale of Cordyceps in China in~~ the ~~three months ended September 30, 2018,~~slower sales contributing lesser margin to ~~smart coffee dispensing machine sales and V-More’s increased presence in new markets in Malaysia, Philippines and Thailand for~~our business during the ~~three months ended September 30, 2019.~~Covid-19 pandemic situation. We hope to make progressive changes to our business model inover the ~~near future~~next few months to ~~further~~ improve our net ~~income.~~income during the Covid-19 pandemic situation.
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Comparison of the six months ended September 30, ~~2019~~2020 and September 30, ~~2018~~2019

The following table sets forth certain operational data for the six months ended September 30, ~~2019,~~2020, as compared to the six months ended September 30, ~~2018:~~2019:

Six months ended September 30, Six months ended September 30,
2019 2018 2020 2019
Net revenue $ 12,610,884 $ 963,497
Net Revenue $ 250,075 $ 12,610,884
Cost of revenue (6,060,453 ) (417,803 ) (85,316 ) (6,060,453 )
Gross profit 6,550,431 545,694 164,759 6,550,431
Operating expenses:
Sales and marketing expense 338,321 242,146 (433,581 ) (338,321 )
General and operating expenses 13,192,258 1,117,042 (1,594,499 ) (13,192,258 )
Total operating expenses (13,530,579 ) (1,359,188 ) (2,028,080 ) (13,530,579 )
Loss from operations (6,980,148 ) (813,494 ) (1,863,321 ) (6,980,148 )
Loss before income taxes (6,965,794 ) (801,760 ) (1,629,586 ) (6,965,794 )
NET LOSS $ (6,977,018 ) $ (801,760 ) $ (1,677,568 ) $ (6,977,018 )

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Net Revenue. We generated net revenue of ~~$12,610,884~~$250,075 and ~~$963,497~~$12,610,884 for the six months ended September 30, 2020 and 2019, respectively. The decrease in net revenue for the six months ended September 30, 2020 was due to COVID-19 related government imposed restrictions impacting goods and ~~2018, respectively.~~services movement and fulfilment. For the six months ended September 30, 2020, 89% of net revenue was contributed by Singapore. None of the other countries contribute more than 10% each. For the six months ended September 30, 2019, 90% of our net revenues were derived from income from V-More, our ecommerce platform. Sales from our IoT’s coffee machines contributed 8% to our revenue for the six months ended September 30, 2019. The balance of net revenues consisted of mainly of administrative charges income, service income. ~~For the six months ended September 30, 2018, 73% of our net revenues were attributable to sales of our Cerfrion and Cordyceps.~~
On a going forward basis, we ~~expect~~hope to generate revenue from our IoT products such as our smart coffee dispensing machines, ~~and~~ e-commerce platform as well as any products that we distribute for our merchants, as more merchants are progressively on ~~boarded progressively, among others.~~boarded.

For the six months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the following geographic regions accounted for 10% or more of our total net revenues:

Country September 30, 2019 September 30, 2018 September 30, 2020 September 30, 2019
Singapore 43% 27% 89% 43%
Malaysia 29% - 4% 29%
Philippines 13% - 1% 13%
Thailand 6% - 1% 6%
Indonesia 3% 2% 3%
Greater China Region 2% 73% –    2%
United States –    –
Rest of the World 4% - 3% 4%
Total 100% 100% 100% 100%

For the six months ended September 30, ~~2019~~2020 and ~~2018,~~2019, no customers accounted for 10% or more of our total net revenues.

~~Key Performance Indicators: Gross Cash Receipts, Supplier Product & Logistics Allowance and Commission Payout~~

~~The following describes the relationship between our key performance indicators and US GAAP reporting:~~
Six Months Ended September 30,
2019 2018
Gross Cash Receipts $ 15,444,307 $ 11,652,082
Less: Undelivered items $ (827,441 ) $ (3,326,047 )
Less: Supplier’s product & logistics allowances $ (319,097 ) $ (3,127,288 )
Less: Commission payout $ (2,095,920 ) $ (4,496,295 )
Net Cash Receipts $ 12,201,849 $ 702,452

Other Sales $ 409,035 $ 261,045

Net Revenue $ 12,610,884 $ 963,497
For the six months ended September 30, 2019, our Gross Cash Receipts net of sales returns was $15,444,307, representing an increase from $11,652,082 for the same period ended 2018. The increase was attributable to changes in product mix from sale of Cordyceps in China in the six months ended September 30, 2018 to increased revenue from IoT’s coffee dispensing machines, contributing 8% and V-More’s increased presence in new markets in Malaysia, Philippines and Thailand, which represented 92% of the overall Gross Cash Receipts. Undelivered items represent the digital products paid but not delivered yet.
Our undelivered items for the six months ended September 30, 2019, was $827,441 and consisted primarily of digital products paid for but not yet delivered. Our undelivered items for the six months ended September 30, 2018, was $~~3,326,047and consisted primarily of Cordyceps and Cerfrion. We expect undelivered items to be fulfilled within three months generally.~~

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Our Supplier Product & Logistics Allowances for the six months ended September 30, 2019 was $319,097, representing a substantial decrease from $3,127,288 for the same period in 2018. The decrease in Supplier Product & Logistics Allowance was attributable to the major shift from the physical sale of Cordyceps in China within the six months ended September 30, 2018 to the online sale of merchant’s offerings using our V-More platform during the six month ended September 30, 2019.
Commission Payout for the six months ended September 30, 2019 was $2,095,920 as compared to $4,496,295 for the six months ended September 30, 2018. The decrease in Commission Payout was due to a change in product mix.Major Vendors.

For the six months ended September 30, ~~2019, other sales of $409,035 consisted mainly of V-More administrative fees income as compared to $261,045 for the same period of 2018 where other sales consisted of primarily of service fee income~~2020 and ~~subscription proceeds.~~
~~Major Vendors.~~
Six Months Ended September 30, 2019
Vendors Purchase Accounts Payable
Barista Uno Private Limited $ 1,035,549 $ 1,900,529
~~For the six months ended September 30,~~ 2019, this is one single vendor representing more than 10% of the Company’s purchase. This vendor (Barista Uno Private Limited) accounted for 17% of the Company’s purchase amounting to $1,035,549 with $1,900,529 of accounts payable.
~~Eldee Tang, our Chief Executive Officer and Director, owns 49% of Barista Uno Private Limited.~~
~~For the six months ended September 30, 2018,~~ no vendors account for more than 10% of the Company’s purchase.

Gross Profit. We achieved a gross profit of ~~$6,550,431~~$164,759 and ~~$545,694~~$6,550,431 for the six months ended September 30, ~~2019,~~2020, and ~~2018,~~2019, respectively. The ~~increase~~attributing factor for the decreased in gross profit ~~is primarily attributable~~was due to lower sales during the ~~major shift in~~Covid-19 pandemic climate. We expect to continue focus on the new IoT product ~~and offering mix. During the six months ended September 30, 2019,~~90% of our gross profit was derived from income from V-More, our ecommerce platform and 8% of our gross profit was contributed by our IoT business, mainly from smart coffee dispensing machine sales. For the six months ended September 30, 2018, 73% of our gross profit was derived from sales of Cordyceps and Cerfrion while the balance of gross profit consisted of mainly of administrative charges income and service income.line.

Operating Expenses.

Six months ended September 30, Six months ended September 30,
2019 2018 2020 2019
Operating expenses:
Sales and marketing expense $ 338,321 $ 242,146 $ 433,581 $ 338,321
General and operating expenses $ 13,192,258 $ 1,117,042 1,594,499 13,192,258
Total operating expenses $ 13,530,579 $ 1,359,188 2,028,080 13,530,579
Less: Stock based compensation $ 10,829,239 $ – – 10,829,239
Total operating expenses (excluding stock based compensation) $ 2,701,340 $ 1,359,188
Total operating expenses (Excluding stock based compensation) $ 2,028,080 $ 2,701,340

During the six months ended September 30, ~~2019,~~2020, and ~~2018,~~2019, we incurred operating expenses of $2,028,080 and $13,530,579, respectively. Our operating expenses for the six months ended September 30, 2020 includes sales and ~~$1,359,188, respectively.~~marketing expense of $433,581 and general and operating expenses of $1,594,499. There was no stock based compensation in the six months ended September 30, 2020, resulting in lower operating expenses. Our operating expenses for the six months ended September 30, 2019 included a one-time charge of $10,829,239 arising from the issuance of shares of our common stock as compensation to our sales affiliates, merchant acquisition consultants and digital offerings consultant. Excluding the one-time stock based compensation charge, our operating expenses would be $2,701,340 for the six months ended September 30, 2019, as compared to $1,359,188 for the same period ended September 30, 2018. Excluding the one-time stock based compensation charge, the increase in operating expenses is primarily attributable to an increase in our manpower and other resources to support our shift in business focus and re-alignment of our strategy.2019.
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Net ~~Income (Loss)~~Loss.
Six months ended September 30,
2019 2018
NET LOSS (INCLUDING STOCK BASED COMPENSATION) $ (6,977,018 ) $ (801,760 )
Less: Stock Based Compensation $ (10,829,239 ) $ –
NET INCOME (EXCLUDING STOCK BASED COMPENSATION) $ 3,852,221 $ (801,760 )

We recorded a net loss of ~~$6,977,018~~$1,677,568 and ~~$801,760~~$6,977,018 for the six months ended September 30, ~~2019,~~2020, and ~~2018,~~2019, respectively. The ~~increase~~decrease in net loss is primarily attributable to the ~~one-time~~one time stock based compensation charge of $10,829,239 for the six months ended September 30, 2019. Excluding the effect of such one-time charge, during the six months ended September 30, 2019, we realized a net income of $3,852,221 as compared to a net loss of $801,760 for the same period ended September 30, 2018. The substantial increase in net income (excluding the effect of our stock based compensation charge) was attributed to our change in product mix from sale of Cordyceps in China in the same period of 2018 to increased revenue from IoT’s coffee machines sales and V-More’s increased presence in new markets in Malaysia, Philippines and Thailand for the six months ended September 30, 2019. We hope to make progressive changes to our business model over the next few months to further improve our net ~~income.~~
~~Stock Based Compensation.~~During the six months ended September 30, 2019, we incurred a one-time charge of $10,829,239 arising from the issuance of 5,447,861 shares of our common stock, at a market value of $2 per share. The issuance was made to about 700 sales associates for prior sales and marketing services provided to us and our subsidiaries, affiliates and merchant acquisition consultants and digital offerings consultant. No stock based compensation was incurredincome during the ~~six months ended September 30, 2018.~~
~~Net Loss (including stock based compensation)~~. We recorded a net loss of $6,977,018 and a net loss of $801,760 for the six months ended September 30, 2019, and 2018, respectively. The increase in the net loss is primarily due to a one-time, non-cash stock based compensation of $10,829,239 to about 700 sales associates for prior sales and marketing services provided to us and our subsidiaries, affiliates and merchant acquisition consultants and digital offerings consultant.Covid-19 pandemic situation.

Liquidity and Capital Resources

As of September 30, ~~2019,~~2020, we had current assets of ~~$8,304,018~~$6,965,546 and current liabilities of ~~$6,598,657.~~$12,150,411. Our current assets consisted of ~~$2,969,854~~$24,591 of cash and cash equivalents, ~~$719,816~~$141,400 of ~~accounts~~account receivable, purchase deposits of ~~$3,048,807, amount due from a third party~~$1,684,359, deferred costs of ~~$217,064, $1,332,161~~$4,587,139, $513,148 of deposits, prepayment and other ~~receivables~~receivable and inventories of ~~$16,316.~~$14,909. Our current liabilities consisted of ~~$648,944~~$3,197,464 of accrued liabilities and ~~other~~account payables, ~~$1,918,003 of accounts payable, $987,058~~$1,080,751 of commission liabilities, ~~$2,411,133~~$6,691,080 of deferred revenue, ~~$17,556~~$80,291 of income tax payable, $518,966 of amount due to Eldee Tang, our Chief Executive Officer and Director, ~~$89,783~~$301,542 of ~~tax payable, $245,863~~current portion of ~~finance leases~~borrowings and $280,317 of amount due to a related party for which it represents a unsecured non-interest bearing advance from our shareholder Ms. Kao Wei-Chen.

As of March 31, ~~2019,~~2020, we had current assets of ~~$10,037,370~~$6,746,428 and current liabilities of ~~$12,264,637.~~$10,056,164. Our current assets consisted of ~~$691,331~~$223,527 of cash and cash equivalents, ~~$6,145,460~~deferred cost of $4,252,107, $152,545 of accounts receivable, purchase deposits of ~~$2,600,732, an amount due from a third party of $221,327, $361,884~~$1,619,966, $418,541 of deposits, prepayment and other receivables, ~~and~~ inventories of ~~$16,636.~~$14,339 and tax recoverable of $65,403. Our current liabilities consisted of ~~$1,617,855~~$2,216,563 of account payables and accrued liabilities, $1,045,568 of commission liabilities, ~~$8,979,352~~$6,239,296 of deferred revenue, ~~$964,001 of accrued liabilities and other payables, $91,483~~$17,662 of amount due to Eldee Tang, our Chief Executive Officer and Director, $280,317 of amount due to a related party consisting of unsecured non-interest bearing advances from our shareholder Ms. Kao Wei-Chen ~~$84,672~~and current portion of ~~tax payable and $246,957~~borrowing of ~~finance lease.~~$256,758.

We had accumulated losses of $132,182,904 and $125,141,278 as of September 30, 2019 and March 31, 2019, respectively. The increase in accumulated losses is mainly due to a one-time, non-cash stock based compensation of $10,829,239 to about 1850 sales associates for prior sales and marketing services provided to us and our subsidiaries and affiliates, merchant acquisition consultants and digital offerings consultant.

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Six months ended
09/30/2019 09/30/2018
Net cash generated from (used in) operating activities $ 2,534,482 $ (1,148,983 )
Net cash used in investing activities $ (42,241 ) $ (177,656 )
Net cash (used in) generated from financing activities $ (166,198 ) $ 131,945
We had accumulated deficits of $139,381,678 and $137,703,504 as of September 30, 2020 and March 31, 2020, respectively. The increase in accumulated deficit is mainly due to the dire decreased in sales volume, as a result of government imposed restrictions on the movement of goods and services globally and locally.
Six months ended September 30,
2020 2019
Net cash (used in) generated from operating activities $ (540,509 ) $ 2,534,482
Net cash used in investing activities $ (74,679 ) $ (42,241 )
Net cash generated from (used in) financing activities $ 374,315 $ (166,198 )

Net Cash (Used in) Generated from ~~(Used In)~~ Operating Activities

Net cash used in operating activities was $540,509 for the six months ended September 30, 2020, and consisted primarily of a net loss of $1,677,568, adjusted for amortization of intangible of $1,135, depreciation of property, plant and equipment of $121,472, a decrease in account receivable of $17,255, a decrease in deposits, prepayment and other receivable of $25,603, an increase in accrued liabilities and account payables of $895,214, an increase in deferred revenue of $204,327, an increase in tax payable of $44,911, offset by an increase in deferred costs of $166,463 and a decrease in commission liabilities of $6,395.
Net cash generated from operating activities was $2,534,482 for the six months ended September 30, 2019, and consisted primarily of a net loss of $6,977,018, adjusted for amortization of intangible of $137,383, depreciation of property, plant and equipment of $98,020, a gain on disposal of property, plant and equipment of $3,599 and a one-time non-cash stock based compensation of $10,829,239, a decrease in account receivable of $5,358,303, an increase in account payables of $1,936,453, an increase in tax payable of $6,807; offset by a decrease in accrued liabilities and other payables of $299,338, by an increase in purchase deposits of $502,971, an increase in deposits, prepayments and other receivable of $986,651, decrease in commission liabilities of $605,397 and a decrease in deferred revenue of $6,456,749.

Net cash used in operating activities was $1,148,983 for the six months ended September 30, 2018, and consisted primarily of a net loss of $801,760, adjusted for amortization of intangible of $25,926 and depreciation of property, plant and equipment of $62,933, an increase in accrued liabilities and other payables of $453,738, an increase in deferred revenue of $1,074,024, offset by an increase in deposits, prepayments and other receivable of $1,091,592, an increase in amount due from related companies of $142,290, a decrease in account payables of $389,225, a decrease in commission liabilities of $27,849 and a decrease in tax payable of $312,888.
Net Cash Used In Investing Activities

Net cash used in investing activities was $74,679 for the six months ended September 30, 2020, and consisted primarily of purchase of property, plant and equipment of $74,679. Net cash used in investing activities was $42,241 for the six months ended September 30, 2019, and consisted primarily of proceeds from disposal of property, plant and equipment of $52,596 and purchase of property, plant and equipment of $94,837.
Net Cash Generated From (Used in) Financing Activities
Net cash ~~used in investing~~generated from financing activities ~~was $177,656~~ for the six months ended September 30, ~~2018~~2020, was $374,315 and consisted primarily of ~~purchases~~advance from a director of ~~plant~~$501,958, repayment of loan of $95,692 and ~~equipment~~repayment of ~~$30,142, purchase~~finance lease of ~~intangible assets of $185,090 and cash received from acquisition of subsidiaries of $37,576.~~
~~Net Cash (Used in) Generated From Financing Activities~~
$31,951. Net cash used in financing activities for the six months ended September 30, 2019, was $166,198 and consisted primarily of amount received from related parties of $5,452, repayment to a director $72,858 and repayment of a finance lease of $98,792. Net cash generated from financing activities for the six months ended September 30, 2018 was $131,945 and consisted primarily of proceeds from the issuance of our securities of $152,726, proceeds from director of $33,816, offset by repayment of a finance lease of $54,597.

We have never paid dividends on our Common Stock. Our present policy is to apply cash to investments in product development, acquisitions or expansion; consequently, we do not expect to pay dividends on Common Stock in the foreseeable future.

The success of our growth strategy is dependent upon the availability of additional capital resources on terms satisfactory to management as we are not generating sufficient revenues from our business operations. Our sources of capital in the past have included the sale of equity securities, which include common stock sold in private transactions, capital leases and stockholder advances. There can be no assurance that we can raise such additional capital resources on satisfactory terms. We believe that our current cash and other sources of liquidity discussed above are adequate to support operations for at least the next 12 months. We anticipate continuing to rely on equity sales of our common shares and shareholder loans in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our plan of operations.

33
Off-Balance Sheet Arrangements

We have no outstanding off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange traded contracts.

Going Concern

The unaudited condensed financial statements contain an explanatory paragraph expressing substantial doubt about our ability to continue operating as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which states that we will realize our assets and satisfy any liabilities and commitments in the ordinary course of business.
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Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the presentation of our financial condition and results of operations and require management's subjective or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's current judgments. We believe the following accounting policies are critical in the preparation of our financial statements.

· ~~Basis of presentation~~
Basis of presentation

These accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

· ~~Use of estimates~~
Use of estimates

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.

· ~~Intangible assets~~
Intangible assets

Intangible assets represented the acquired game right from a related party, which are stated at acquisition cost, less accumulated amortization. The Company amortizes its intangible assets with definite lives over their estimated useful lives and reviews these assets for impairment when an indicator for potential impairment exists. The Company is currently amortizing its intangible assets with definite lives over periods of 3 years.

· ~~Property, plant and equipment~~
Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

Expected useful lives
Building 38 years or lesser than term of lease
Leasehold improvements ~~3-10~~3 - 10 years or lesser than term of lease
Furniture and fittings 3 years
Office equipment and computers ~~1- 3~~1 - 5 years
Motor vehicle 23 - 3.33 years

Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.


3834

Revenue recognition
The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations under each of its agreements:
· ~~Revenue recognition~~identify the contract with a customer;
· identify the performance obligations in the contract;
· determine the transaction price;
· allocate the transaction price to performance obligations in the contract; and
· recognize revenue as the performance obligation is satisfied.

~~Revenue~~The Company accounts for a contract with a customer when the contract is ~~recognized when it is realized or realizable and earned,~~committed in ~~accordance with ASC 605~~~~Revenue Recognition~~ ~~(“ASC 605”). Revenue from~~writing, the ~~sale of products is recognized when all~~rights of the ~~following criteria~~parties, including payment terms, are ~~met: (1) persuasive~~identified, the contract has commercial substance and consideration to collect is substantially probable.
The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon delivery of products. Persuasive evidence of an arrangement ~~exists; (2) delivery has occurred or services have been performed; (3)~~is demonstrated via sales contract and invoice; and the ~~seller’s~~sales price to the ~~buyer~~customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or ~~determinable;~~volume incentive. The Company recognizes revenue when title and ~~(4)~~ownership of the goods are transferred upon shipment to the customer by the Company to consider control of goods are transferred to its customer and collectability of payment is reasonably assured. ~~Product sales~~The Company’s revenues are ~~recorded net of good and service taxes and product returns.~~recognized at a point in time after all performance obligations are satisfied.

The Company records revenues from the sales of third-party products on a “gross” basis pursuant to ASC 605-45Revenue Recognition - Principal Agent Considerations, when we are the primary obligor in the arrangement with the end customer and have the risks and rewards as principal in the transaction, such as responsibility for ~~fulfilment,~~fulfillment, retaining the risk for collection, and establishing the price of the products. If these indicators have not been met, or if indicators of net revenue reporting specified in ASC 605-45 are present in the arrangement, revenue is recognized net of related direct costs.

· ~~Commission credits~~
Product sales are recorded net of good and service taxes and product returns.
Commission credits

The Company maintains a membership program, whereby certain members earn commission credits, based on the sales volume of certain other members who are sponsored directly or indirectly by the member. Commission credits are redeemable on future spending of the products purchased or playing online games. Commission credits are recorded and classified as operating expense when the products are delivered and revenue is recognized. The estimated liability for unredeemed commission credit is included in commission liability on the accompanying balance sheets. Management reviews the adequacy for the accrual for unredeemed commission credits by periodically evaluating the historical redemption and projected trends.

· ~~Foreign currencies translation~~
Foreign currencies translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement of operations.
35

The reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company’s operating subsidiaries in Singapore and Seychelles maintain their books and record in its local currency, Singapore Dollars (“S$”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity.

Translation of amounts from S$ into US$1 has been made at the following exchange rates for the ~~three~~six months ended September 30, ~~2019~~2020 and ~~2018:~~2019:

September 30, 2019 September 30, 2018 September 30, 2020 September 30, 2019
Period-end S$:US$1 exchange rate 1.3821 1.3666 1.3692 1.3821
Period average S$:US$1 exchange rate 1.3689 1.3507 1.3655 1.3689

· ~~Related parties~~
Related parties

The Company follows the ASC 850-10,Related Party for the identification of related parties and disclosure of related party transactions.
39

Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the consolidated financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

· ~~Fair value of financial instruments~~
Fair value of financial instruments

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below:

Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data.

36
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

40
The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, approximate their fair values because of the short maturity of these instruments.

· ~~Recent accounting pronouncements~~
Recent accounting pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

ITEM 3          Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

ITEM 4          Controls and Procedures

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures, subject to limitations as noted below, as of September 30, ~~2019,~~2020, and during the period prior to and including the date of this report, were not effective to ensure that all information required to be disclosed by us in the reports that we file or submit under the Exchange Act is: (i) recorded, processed, summarized and reported, within the time periods specified in the Commission’s rule and forms; and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. The Chief Executive Officer and Chief Financial Officer concluded that (i) there continue to be material weaknesses in the Company’s internal controls over financial reporting, that the weaknesses constitute a “deficiency” which could result in misstatements of the foregoing accounts and disclosures that could result in a material misstatement to the financial statements for the period covered by this report that would not be detected, and (ii) accordingly, our disclosure controls and procedures ~~were~~may not be effective as of September 30, ~~2019.~~2020.

Inherent Limitations

Because of its inherent limitations, our disclosure controls and procedures may not prevent or detect misstatements. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Changes in Internal Control over Financial Reporting

Subject to the foregoing disclosure, there were no changes in our internal control over financial reporting that occurred during our ~~last~~ fiscal quarter ended September 30, ~~2019,~~2020, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

4137

PART II OTHER INFORMATION

ITEM 1          Legal Proceedings

In April 2020, we received invoices from each of the Public Company Accounting Oversight Board (“PCAOB”) and the Financial Accounting Standards Board (“FASB”) in the amounts of $702,600 and $92,100, respectively, for our share of the PCAOB and FASB Issuer Accounting Support Fee for calendar year 2020. The fees were due May 18, 2020. We have petitioned the PCAOB and FASB to review our fee assessments and are in the process of review. We believe that there is a material likelihood that we will not prevail, and that we will be required to pay all assessed fees.
In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Company discloses the amount of the accrual if the financial statements would be otherwise misleading.
When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then the Company discloses an estimate of the possible loss or range of loss, if such estimate can be made or discloses that an estimate cannot be made.
The assessments whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, often involve a series of complex judgments about future events. Management is often unable to estimate a range of reasonably possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss, fine, penalty or business impact, if any.
We expect that the aggregate range of reasonably possible losses for such legal proceeding is likely to range from approximately $800,000 and upwards if penalties or interest are assessed against us in the event that the Company is unable to timely pay assessed amounts. It is probable that $800,000 will be payable by March 31, 2021. The estimated aggregate range of reasonably possible losses is based upon currently available information for those proceedings in which the Company is involved, taking into account the Company’s best estimate of such losses for those cases for which such estimate can be made. Those matters for which an estimate is not possible are not included within this estimated range. Therefore, such range represents what the Company believes to be an estimate of possible loss only for those matters meeting such criteria. It does not represent the Company’s maximum loss exposure.
Except as set forth above, there are no material pending legal proceedings to which we or our subsidiaries are a party or to which any ~~legal~~of our or ~~administrative~~their property is subject, nor are there any such proceedings ~~that we believe, individually~~known to be contemplated by governmental authorities. None of our directors, officers, affiliates or any owner of record or beneficially of more than 5% of our common stock, or any associate of any of the foregoing, is involved in ~~the aggregate, would be likely~~a proceeding adverse to ~~have~~our business or has a material interest adverse ~~effect on~~to our ~~financial condition or results of operations.~~business.
38

ITEM 1A       Risk Factors

~~None.~~If we are unsuccessful in appealing our fee assessments from PCAOB and FASB and we are unable to pay such fees, we may be unable to maintain our status as a smaller reporting company. Losing our status as a smaller reporting company may adversely affect our ability to establish a public trading market for our common stock. As a result, you may experience difficulties in reselling your stock.
PCAOB Rule 7104(b)(1) provides that a registered public accounting firm is prohibited from (i) signing an unqualified audit opinion with respect to an issuer’s financial statements, (ii) issuing a consent to include an audit opinion issued previously, or (iii) signing a document, report, notice, or other record concerning procedures or controls of any issuer required under the securities laws (collectively, the "auditor services described in PCAOB Rule 7104(b)") unless the registered public accounting firm has ascertained that the issuer (including any broker or dealer subsidiary of the issuer) has no outstanding past-due share of the PCAOB or FASB issuer accounting support fees or has a petition pursuant to PCAOB Rule 7103(c) pending. We cannot assure you that we will be able to timely pay assessed PCAOB fees in the event we are unable to prevail in our appeal. If our auditor is prohibited from performing the foregoing actions, we may not be able to retain our status as a smaller reporting company. We may be required to report under an alternative standard such as the alternative reporting standards enumerated by the OTC Markets Group. Reporting under an alternative reporting standard may adversely affect our ability to establish a public trading market for our common stock as trading of securities on the OTC Pink is often sporadic. In such event, investors may have difficulty buying and selling our shares or obtaining market quotations for them, which may have a negative effect on the market price of our common stock. You may not be able to sell your shares at their purchase price or at any price at all. Accordingly, you may have difficulty reselling any shares you purchase from the selling security holders.
COVID-19 has had an adverse effect that is material on our business and may continue to do so for the next twelve months.
During March 2020, the World Health Organization declared the rapidly growing coronavirus outbreak to be a global pandemic. The COVID-19 pandemic has significantly impacted health and economic conditions throughout Singapore and Southeast Asia. National, regional and local governments took a variety of actions to contain the spread of COVID-19, including office and store closures, quarantining suspected COVID-19 patients, and capacity limitations. These developments have significantly impacted our results of operations, financial condition and cash flows.
In response to the outbreak and related government-imposed restrictions impacting goods and services movement and fulfilment, we have taken a series of measures accordingly, including telecommute working for some employees, reducing pay and benefits for remaining employees, and cutting back capital spending. The above measures have affected our operating capacity and work efficiency, and negatively impacted our sales and marketing activities as well as its business performance. The extent to which COVID-19 affects our business performance will depend on the future development of the epidemic, including new actions taken by the government to contain the outbreak, which is highly uncertain and unpredictable. In addition, if the economy of Southeast Asia as a whole is negatively impacted by the outbreak, our operating performance will also be adversely affected.
Our unaudited condensed consolidated financial statements for the three months ended September 30, 2020, has included a note about our ability to continue as a going concern due to consecutive quarterly losses from operations from the last quarter and continuing into the second quarter of 2021 as a result of COVID-19. If COVID-19 continues to adversely affect our business and financial performance, we may not be able to generate sufficient cash flow to meet our operating expenses.
In light of the uncertainty as to when we can resume full operations and the uncertain customer demand environment, we are seeking financing from equity investors and financial institutions for current and projected future working capital and growth expansion purposes. In addition, we have also re-aligned our targeted sectors and increased product bundling in our business plan. Based on our revised business plan and updated forecast, we believe the Company will have sufficient operating cash flows to operate as a going concern over the next 12   months.
39

ITEM 2          Unregistered Sales of Equity Securities and Use of Proceeds

None.

ITEM 3          Defaults upon Senior Securities

None.

ITEM 4          Mine Safety Disclosures

Not applicable.

ITEM 5          Other Information
None.


4240

ITEM 6          Exhibits

Exhibit No. Name of Exhibit
3.1 Amended and Restated Certificate of Incorporation (1)
3. Amended and Restated Bylaws (1)
4.1 Form of common stock certificate (2)
4.2 Description of Capital Stock(3)
10.1 Patent Transfer and Sales Agreement dated July 27, 2010 (2)
10.2 Share Sale Agreement, dated January 29, 2018, by and between Eldee Wai Chong Tang and Kao Wei Chen (4)
10.3 Form of Stockholder Representation Letters (5)
10.4 Form of Stockholder Representation Letters (6)
10.5 Form of Trustee Letter (7)
10.6 Form of Stockholder Representation Letters (8)
10.7 Form of Trustee Letter (9)
10.8 V-More Merchant Acquisition Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Frank Chia Kok Meng (10)
10.9 V-More Merchant Acquisition Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Lew Chuen Cheah (11)
10.10 V-More Merchant Acquisition Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Yang Shang Yue (12)
10.11 Consulting Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Sukullayanee Suwunnavid (13)
10.12 ~~Binding Memorandum of Understanding,~~Consulting Agreement dated ~~April 1,~~October 8, 2019, by and between ~~the Company~~Noble Vici Group, Inc. and ~~Eldee Wai Chong Tang.~~Jenny Chen-Drake (14)
10.13 Service Agreement, dated May 2, 2018, by and between Neo & Partners Global and Noble Vici Private Limited (15)
10.14 Secured Term Loan Facility dated September 14, 2018, by Ethoz Capital Ltd. in favor of UB45 Pte. Ltd. (16)
10.15 Employment Letter, dated March 29, 2018, by and between Noble Vici Private Limited and Eldee Tang Wai Chong (15)
10.16 Employment Agreement, dated March 29, 2018, by and between Noble Vici Private Limited and Yip Sin Chi (17)
14 Code of Business Conduct and Ethics (18)
21 List of Subsidiaries~~(19)~~*
31.1 Certification required under Rule 13a-14(a)/15d-14(a) under the Exchange Act.*
32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

101.INS XBRL Instance Document *Document*
101.SCH XBRL Schema ~~Document~~ *Document*
101.CAL XBRL Calculation Linkbase ~~Document~~ *Document*
101.DEF XBRL Definition Linkbase ~~Document~~ *Document*
101.LAB XBRL Label Linkbase ~~Document~~ *Document*
101.PRE XBRL Presentation Linkbase ~~Document~~ *Document*
*Filed herewith.

(1)   Incorporated by reference from the Exhibits to the Definitive Information Statement on Schedule 14C with the Securities and Exchange Commission on May 7, 2018, and incorporated herein by reference.
(2) Incorporated by reference from the Exhibits to our Registration Statement on Form S-1 filed with the Securities and Exchange Commission on October 12, 2010, and incorporated herein by reference.
(3) Incorporated by reference from ~~the Exhibits~~Exhibit 4.2 to our Annual Report on Form 10-K filed with the Securities and Exchange Commission on ~~July 15, 2019~~August 14, 2020.
(4) Incorporated by reference from the Exhibits to our Current Report on Form 8-K filed with the Securities and Exchange Commission on August 8, 2018.
(5) Incorporated by reference from Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 17, 2018.
43
(6) Incorporated by reference from Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2018.
(7) Incorporated by reference from Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2018.
(8) Incorporated by reference from Exhibits 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 11, 2019.
(9) Incorporated by reference from Exhibits 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 11, 2019.
(10) Incorporated by reference from Exhibit 10.1 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(11) Incorporated by reference from the Exhibit 10.2 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(12) Incorporated by reference from Exhibit 10.3 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(13) Incorporated by reference from Exhibit 10.4 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(14) Incorporated by reference from Exhibit 10.1 to our ~~Current Report~~Registration Statement on Form ~~8-K~~S-8 filed with the Securities and Exchange Commission on ~~April 1,~~October 9, 2019.
(15) Incorporated by reference from the Exhibits to our Current Report on Form 8-K filed with the Securities and Exchange Commission on August 8, 2018.
(16) Incorporated by reference from Exhibit 10.4 to our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 2, 2019.
(17) Incorporated by reference from Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on June 17, 2019.
(18) Incorporated by reference from Exhibit 14 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 16, 2018.
~~(19)~~ ~~Incorporated by reference from Exhibit 21.1 to our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 14, 2019.~~

4441

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

NOBLE VICI GROUP, INC.

By: /s/Eldee Wai Chong Tang
Eldee Wai Chong Tang
Chief Executive Officer

Date:       November ~~19, 2019~~27, 2020

4542

	Common stock				Additional paid-in		Deferred			Accumulated other comprehensive income			Accumulated			Total stockholders’ equity			Non- controlling			Total equity
	No. of shares		Amount		capital		compensation			(loss)			losses			(deficit)			interest			(deficit)

Balance as of April 1, 2019 (audited)		210,704,160	$	21,070	$	136,227,920	$	(10,936,760	)	$	20,089	��	$	(125,141,278	)	$	191,041		$	(106,069	)	$	84,972

Amortization of stock-based compensation		–		–		–		10,936,760			–			–			10,936,760			–			10,936,760

Foreign currency translation adjustment		–		–		–		–			(2,897	)		–			(2,897	)		–			(2,897	)

Net loss for the period		–		–		–		–			–			(6,856,165	)		(6,856,165	)		15,661			(6,840,504	)

Balance as of June 30, 2019		210,704,160	$	21,070	$	136,227,920	$	–		$	17,192		$	(131,997,443	)	$	4,268,739		$	(90,408	)	$	4,178,331

Foreign currency translation adjustment											(158,572	)		–			(158,572	)		3,569			(155,003	)

Net loss for the period											–			(185,461	)		(185,461	)		48,947			(136,514	)
Balance as of September 30, 2019		210,704,160	$	21,070	$	136,227,920	$	–		$	(141,380	)	$	(132,182,904	)	$	3,924,706		$	(37,892	)	$	3,886,814

Balance as of April 1, 2020 (audited)		210,804,160	$	21,080	$	136,427,910	$	–		$	(218,893	)	$	(137,703,504	)	$	(1,473,407	)	$	(55,117	)	$	(1,528,524	)

Foreign currency translation adjustment		–		–		–		–			(18,892	)		–			(18,892	)		–			(18,892	)

Net loss for the period		–		–		–		–			–			(825,678	)		(825,678	)		3,687			(821,991	)

Balance as of June 30, 2020		210,804,160	$	21,080	$	136,427,910	$	–		$	(237,785	)	$	(138,529,182	)	$	(2,317,977	)	$	(51,430	)	$	(2,369,407	)

Foreign currency translation adjustment											6,208			–			6,208			–			6,208

Net loss for the period											–			(852,496	)		(852,496	)		(3,081	)		(855,577	)

Balance as of September 30, 2020		210,804,160	$	21,080	$	136,427,910	$	–		$	(231,577	)	$	(139,381,678	)	$	(3,164,265	)	$	(54,511	)	$	(3,218,776	)

	Six months ended September 30, 2019
										Accumulated
										other						Total
					Additional					comprehensive						stockholders’			Non-
	Common stock				paid up		Deferred			income			Accumulated			equity			controlling			Total
	No. of shares		Amount		capital		compensation			(loss)			losses			(deficit)			interest			equity

Balance as of April 1, 2019		210,704,160	$	21,070	$	136,227,920	$	(10,936,760	)	$	20,089		$	(125,141,278	)	$	191,041		$	(106,069	)	$	84,972

Non-controlling interest		–		–		–		–			–			–			–			3,569			3,569

Amortization of stock-based compensation		–		–		–		10,936,760			(107,521	)		–			10,829,239			–			10,829,239

Foreign currency translation adjustment		–		–		–		–			(53,948	)		–			(53,948	)		–			(53,948	)

Net (loss) income for the period		–		–		–		–			–			(7,041,626	)		(7,041,626	)		64,608			(6,977,018	)

Balance as of September 30, 2019		210,704,160	$	21,070	$	136,227,920	$	–		$	(141,380	)	$	(132,182,904	)	$	3,924,706		$	(37,892	)	$	3,886,814

	Six months ended September 30, 2018
							Accumulated
							other						Total
					Additional		comprehensive						stockholders’			Non-
	Common stock				paid up		(loss)			Accumulated			equity			controlling		Total
	No. of shares		Amount		capital		income			losses			(deficit)			interest		deficit

Balance as of April 1, 2018		140,000,000	$	14,000	$	–	$	(46,440	)	$	(1,131,214	)	$	(1,163,654	)	$	–	$	(1,163,654	)

Shares issued for acquisition of legal acquirer		2,663,135		266		–		–			(319,234	)		(318,968	)		–		(318,968	)

Fractional shares from reverse splits		26		–		–		–			–			–			–		–

Capital injection from shareholder		–		–		152,726		–			–			152,726			–		152,726

Share issued for acquisition of subsidiaries		1,020,000		102		2,039,898		–			–			2,040,000			–		2,040,000

Non-controlling interest from acquisition		–		–		–		–			–			–			10,872		10,872

Foreign currency translation adjustment		–		–		–		59,886			–			59,886			–		59,886

Net loss for the period		–		–		–		–			(801,760	)		(801,760	)		–		(801,760	)

Balance as of September 30, 2018		143,683,161	$	14,368	$	2,192,624	$	13,446		$	(2,252,208	)	$	(31,770	)	$	10,872	$	(20,898	)

	Three months ended September 30, 2019
									Accumulated
									other						Total
					Additional				comprehensive						stockholders’			Non-
	Common stock				paid up		Deferred		income			Accumulated			equity			controlling			Total
	No. of shares		Amount		capital		compensation		(loss)			losses			(deficit)			interest			equity

Balance as of July 1, 2019		210,704,160	$	21,070	$	136,227,920	$	–	$	17,192		$	(131,997,443	)	$	4,268,739		$	(90,408	)	$	4,178,331

Foreign currency translation adjustment		–		–		–		–		(158,572	)		–			(158,572	)		3,569			(155,003	)

Net (loss) income for the period		–		–		–		–		–			(185,461	)		(185,461	)		48,947			(136,514	)

Balance as of September 30, 2019		210,704,160	$	21,070	$	136,227,920	$	–	$	(141,380	)	$	(132,182,904	)	$	3,924,706		$	(37,892	)	$	3,886,814

	Three months ended September 30, 2018
							Accumulated
							other						Total
					Additional		comprehensive						stockholders’			Non-
	Common stock				paid up		(loss)			Accumulated			equity			controlling		Total
	No. of shares		Amount		capital		income			losses			(deficit)			interest		deficit

Balance as of July 1, 2018 (restated)		140,000,000	$	14,000	$	–	$	(3,730	)	$	(1,371,277	)	$	(1,361,007	)	$	–	$	(1,361,007	)

Shares issued for acquisition of legal acquirer		2,663,135		266		–		–			(319,234	)		(318,968	)		–		(318,968	)

Fractional shares from reverse splits		26		–		–		–			–			–			–		–

Capital injection from shareholder		–		–		152,726		–			–			152,726			–		152,726

Share issued for acquisition of subsidiaries		1,020,000		102		2,039,898		–			–			2,040,000			–		2,040,000

Non-controlling interest from acquisition		–		–		–		–			–			–			10,872		10,872

Foreign currency translation adjustment		–		–		–		17,176			–			17,176			–		17,176

Net loss for the period		–		–		–		–			(561,697	)		(561,697	)		–		(561,697	)

Balance as of September 30, 2018		143,683,161	$	14,368	$	2,192,624	$	13,446		$	(2,252,208	)	$	(31,770	)	$	10,872	$	(20,898	)

Name	Place of incorporation and kind of legal entity	Principal activities and place of operation	Particulars of issued/ registered share capital	Effective interest held

Noble Vici Pte Ltd	Republic of Singapore	Holding company	S$200,001	100%

Noble Infotech Applications Pte Ltd	Republic of Singapore	Development of software for interactive digital media and software consultancy	S$ 1	100%

Noble Digital Apps Sendirian Berhad	Federation of Malaysia	Digital apps and big data business	MYR1,000	51%

The Digital Agency Pte. Ltd.	Republic of Singapore	Business and management consultancy services	$1	51%

Venvici Pte Ltd	Republic of Singapore	Business and management consultancy services on e-commerce service	S$100,000	100%

Venvici Ltd	Republic of Seychelles	Business and management consultancy services on e-commerce service	US$50,000	100%

Ventrepreneur (SG) Pte Ltd	Republic of Singapore	Online retailing	S$10,000	100%

UB45 Pte Limited	Republic of Singapore	Investment holding	S$10,000	100%

ToroV System Private Limited	Republic of Singapore	IoT Retailing	S$10,000	51%

VMore Holding Limited	New Zealand	New Zealand holding company	NZ$10,000	100%

VMore Merchants Pte Ltd	Republic of Singapore	Merchants onboarding	S$1,000	100%

AIM System Pte Ltd	Republic of Singapore	Affiliate System Provider	S$1,000	100%

		Expected useful lives
Building		38 years or lesser than term of lease
Leasehold improvements		~~3-10~~3 – 10 years or lesser than term of lease
Furniture and fittings		3 years
Office equipment and computers		~~1- 3~~1 – 5 years
Motor vehicle		23 – 3.33 years


•	identify the contract with a customer;
•	identify the performance obligations in the contract;
•	determine the transaction price;
•	allocate the transaction price to performance obligations in the contract; and
•	recognize revenue as the performance obligation is satisfied.

	September 30, 2019		September 30, 2018
Period-end S$:US$1 exchange rate		1.3821		1.3666
Period average S$:US$1 exchange rate		1.3689		1.3507

Level 1		Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2		Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3		Pricing inputs that are generally observable inputs and not corroborated by market data.

Years ending September 30:
2020	$	272,149
2021		147,129

Total	$	419,278

	As of
	September 30, 2020		March 31, 2020
			(Audited)
Current portion
Loan	$	248,125	$	220,283
Lease liabilities		53,417		36,475
		301,542		256,758

Non-current portion
Loan		1,603,272		1,652,120
Lease liabilities		89,560		40,365
		1,692,832		1,692,485

	$	1,994,374	$	1,949,243

	September 30, 2019			March 31, 2019

Finance lease	$	2,893,668		$	3,089,747
Less: interest expense		(779,309	)		(834,082	)

Net present value of finance lease	$	2,114,359		$	2,255,665

Current portion	$	245,863		$	246,957
Non-current portion		1,868,496			2,008,708

Total	$	2,114,359		$	2,255,665

	Three Months Ended September 30, 2019
Vendors	Purchase		Accounts Payable
Vendor A	$	1,035,549	$	1,900,529

	Six Months Ended September 30, 2019
Vendors	Purchase		Accounts Payable
Vendor A	$	1,035,549	$	1,900,529

	Three months ended September 30,				Three months ended September 30,
	2019		2018		2020		2019

China	$	121,954	$	252,557	$	–	$	121,954
Singapore		1,917,996		110,786		108,411		1,917,996
Malaysia		400,551		–		4,867		400,551
Philippines		44,014		–		743		44,014
Thailand		46,056		–		1,927		46,056
United States						169		–
Indonesia		90,916		–		2,389		90,916
Other countries in Asia Pacific		116,767		1,009		1,331		116,767

	$	2,738,254	$	364,352	$	119,837	$	2,738,254

	Six months ended September 30,				Six months ended September 30,
	2019		2018		2020		2019

China	$	216,630	$	700,813	$	–	$	216,630
Singapore		5,471,751		260,901		223,227		5,471,751
Malaysia		3,647,045		–		9,227		3,647,045
Philippines		1,646,602		–		1,441		1,646,602
Thailand		797,854		–		3,365		797,854
United States						1,095		–
Indonesia		397,016		–		4,619		397,016
Other countries in Asia Pacific		433,986		1,783		7,101		433,986

	$	12,610,884	$	963,497	$	250,075	$	12,610,884

~~Name~~	~~Office(s)~~
~~Eldee Tang~~	~~Chief Executive Officer and Director~~
~~Sin Chi Yip~~	~~Chief Financial Officer~~
~~Jon Yee Chuan Lim~~	~~Chief Operating Officer and Secretary~~

	1.	Increased the Company’s authorized capital from 3,000,000,000 shares of common stock, par value $0.0001 (the “Common Stock”), to 3,050,000,000 shares, consisting of 3,000,000,000 shares of Common Stock and 50,000,000 shares of undesignated preferred stock, par value $0.0001 (the “Preferred Stock”);
	2.	Effected a 1-for-1000 reverse stock split of our issued and outstanding Common Stock (the “Reverse Stock Split”);
	3.	Elected not to be governed by Section 203 of the Delaware General Corporation Law;
	4.	Changed the Company’s fiscal year end from December 31st to March 31st, for all purposes (including tax and financial accounting);
	5.	Adopted Amended and Restated Certificate of Incorporation for the purpose of consolidating the amendments to the Company’s Certificate of Incorporation; and
	6.	Adopted the Amended and Restated Bylaws of the Company.

Name of Branch	Ventrepreneur (SG) Private Limited, Taiwan Branch
Office Address	282 Zheng Bei Road 2, Level 5 Unit 3, Xitun District, Taichung, Taiwan
Tenancy Period	December 1, 2018 to November 30, 2020
Premises Size	Approximately 3,000 square feet
Yearly Lease Amount	US$37,473 for Taiwan branch

Country	September 30, 2019		September 30, 2018		September 30, 2020		September 30, 2019
Singapore		70%		30%		90%		70%
Malaysia		15%		-		4%		15%
Philippines		2%		-		1%		2%
Thailand		2%		-		2%		2%
Indonesia		3%		-		2%		3%
Greater China Region		4%		69%		–		4%
United States						–		–
Rest of the World		4%		1%		1%		4%
Total		100%		100%		100%		100%

	Six months ended
	09/30/2019			09/30/2018
Net cash generated from (used in) operating activities	$	2,534,482		$	(1,148,983	)
Net cash used in investing activities	$	(42,241	)	$	(177,656	)
Net cash (used in) generated from financing activities	$	(166,198	)	$	131,945

	·	~~Revenue recognition~~identify the contract with a customer;
	·	identify the performance obligations in the contract;
	·	determine the transaction price;
	·	allocate the transaction price to performance obligations in the contract; and
	·	recognize revenue as the performance obligation is satisfied.

Exhibit No.	Name of Exhibit
3.1	Amended and Restated Certificate of Incorporation (1)
3.	Amended and Restated Bylaws (1)
4.1	Form of common stock certificate (2)
4.2	Description of Capital Stock(3)
10.1	Patent Transfer and Sales Agreement dated July 27, 2010 (2)
10.2	Share Sale Agreement, dated January 29, 2018, by and between Eldee Wai Chong Tang and Kao Wei Chen (4)
10.3	Form of Stockholder Representation Letters (5)
10.4	Form of Stockholder Representation Letters (6)
10.5	Form of Trustee Letter (7)
10.6	Form of Stockholder Representation Letters (8)
10.7	Form of Trustee Letter (9)
10.8	V-More Merchant Acquisition Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Frank Chia Kok Meng (10)
10.9	V-More Merchant Acquisition Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Lew Chuen Cheah (11)
10.10	V-More Merchant Acquisition Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Yang Shang Yue (12)
10.11	Consulting Agreement dated March 19, 2019, by and between Noble Vici Group, Inc. and Sukullayanee Suwunnavid (13)
10.12	~~Binding Memorandum of Understanding,~~Consulting Agreement dated ~~April 1,~~October 8, 2019, by and between ~~the Company~~Noble Vici Group, Inc. and ~~Eldee Wai Chong Tang.~~Jenny Chen-Drake (14)
10.13	Service Agreement, dated May 2, 2018, by and between Neo & Partners Global and Noble Vici Private Limited (15)
10.14	Secured Term Loan Facility dated September 14, 2018, by Ethoz Capital Ltd. in favor of UB45 Pte. Ltd. (16)
10.15	Employment Letter, dated March 29, 2018, by and between Noble Vici Private Limited and Eldee Tang Wai Chong (15)
10.16	Employment Agreement, dated March 29, 2018, by and between Noble Vici Private Limited and Yip Sin Chi (17)
14	Code of Business Conduct and Ethics (18)
21	List of Subsidiaries~~(19)~~*
31.1	Certification required under Rule 13a-14(a)/15d-14(a) under the Exchange Act.*
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

101.INS	XBRL Instance Document Document
101.SCH	XBRL Schema ~~Document~~ Document
101.CAL	XBRL Calculation Linkbase ~~Document~~ Document
101.DEF	XBRL Definition Linkbase ~~Document~~ Document
101.LAB	XBRL Label Linkbase ~~Document~~ Document
101.PRE	XBRL Presentation Linkbase ~~Document~~ Document

(1)		Incorporated by reference from the Exhibits to the Definitive Information Statement on Schedule 14C with the Securities and Exchange Commission on May 7, 2018, and incorporated herein by reference.
(2)		Incorporated by reference from the Exhibits to our Registration Statement on Form S-1 filed with the Securities and Exchange Commission on October 12, 2010, and incorporated herein by reference.
(3)		Incorporated by reference from ~~the Exhibits~~Exhibit 4.2 to our Annual Report on Form 10-K filed with the Securities and Exchange Commission on ~~July 15, 2019~~August 14, 2020.
(4)		Incorporated by reference from the Exhibits to our Current Report on Form 8-K filed with the Securities and Exchange Commission on August 8, 2018.
(5)		Incorporated by reference from Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 17, 2018.

(6)		Incorporated by reference from Exhibit 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2018.
(7)		Incorporated by reference from Exhibit 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2018.
(8)		Incorporated by reference from Exhibits 10.2 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 11, 2019.
(9)		Incorporated by reference from Exhibits 10.3 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 11, 2019.
(10)		Incorporated by reference from Exhibit 10.1 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(11)		Incorporated by reference from the Exhibit 10.2 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(12)		Incorporated by reference from Exhibit 10.3 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(13)		Incorporated by reference from Exhibit 10.4 to our Registration Statement on Form S-8 filed with the Securities and Exchange Commission on March 19, 2019.
(14)		Incorporated by reference from Exhibit 10.1 to our ~~Current Report~~Registration Statement on Form ~~8-K~~S-8 filed with the Securities and Exchange Commission on ~~April 1,~~October 9, 2019.
(15)		Incorporated by reference from the Exhibits to our Current Report on Form 8-K filed with the Securities and Exchange Commission on August 8, 2018.
(16)		Incorporated by reference from Exhibit 10.4 to our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 2, 2019.
(17)		Incorporated by reference from Exhibit 10.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on June 17, 2019.
(18)		Incorporated by reference from Exhibit 14 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 16, 2018.
~~(19)~~		~~Incorporated by reference from Exhibit 21.1 to our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 14, 2019.~~

	NOBLE VICI GROUP, INC.


	By:	/s/Eldee Wai Chong Tang
		Eldee Wai Chong Tang
		Chief Executive Officer




Date: November ~~19, 2019~~27, 2020

Years ending September 30: